Bitcoin Core Set to Remove OP_RETURN Limit in Next Upgrade: What It Means for the Future
Bitcoin Core developers have confirmed the removal of the 80-byte restriction on OP_RETURN transaction outputs in the next software release, sparking debate within the crypto community. This article explores the implications of this change and its potential impact on Bitcoin's functionality and adoption.
Bitcoin Core to Remove OP_RETURN Limit in Next Upgrade
Bitcoin Core developers have confirmed the removal of the 80-byte restriction on OP_RETURN transaction outputs in the next software release. The decision, announced by developer Gregory Sanders on May 5 via GitHub, has sparked debate within the crypto community.
The 80-byte limit was initially implemented to discourage excessive use of block space for non-payment data. Sanders argued the restriction has outlived its purpose, enabling broader use of OP_RETURN outputs for data storage. Market observers note this could expand Bitcoin's utility beyond financial transactions.
Critics contend the change may lead to bloated blocks and network congestion. The move comes as developers balance Bitcoin's core payment function with emerging use cases for its Immutable ledger.
Florida and Arizona Retreat from Bitcoin Reserve Bills Amid Political Resistance
Florida has withdrawn two legislative proposals—House Bill 487 and Senate Bill 550—that sought to establish a state-level Bitcoin reserve. The move follows Arizona Governor Katie Hobbs' veto of a similar bill, House Bill 1025, which she dismissed as an "untested investment" despite bipartisan support.
Bitcoin maximalists remain undeterred. Dennis Porter, CEO of the Satoshi Action Fund, pointed out that Arizona still has "two chances" to revisit crypto reserve adoption. The legislative setbacks in both states highlight growing political resistance to state-backed bitcoin initiatives, even as advocacy groups push for broader institutional acceptance.
The Florida Senate officially marked the bills as "indefinitely postponed" on May 3, signaling a cooling appetite for cryptocurrency integration in state treasuries. Market observers note the contrast between legislative hesitation and the crypto industry's bullish long-term outlook.
Corporate Treasuries Could Hold $330B in Bitcoin by 2029, Bernstein Predicts
Bernstein analysts project a seismic shift in corporate treasury strategies, with Bitcoin allocations potentially reaching $330 billion within five years. The forecast underscores a dramatic reversal in institutional sentiment toward cryptocurrency adoption.
BlackRock's transformation from Bitcoin skeptic to ETF leader exemplifies this trend. The firm's $55 billion IBIT product now dominates the spot Bitcoin ETF market, commanding nearly half of the sector's $116 billion in assets under management.
Market observers note the BTC Bull token stands to benefit disproportionately from this institutional wave. The accelerating corporate adoption narrative gained further credibility through Bernstein's research suggesting 5% treasury allocations may become commonplace among forward-thinking enterprises.
New Hampshire Establishes First State-Level Bitcoin Reserve in U.S.
New Hampshire has become the first U.S. state to authorize a strategic Bitcoin reserve, marking a significant milestone in institutional cryptocurrency adoption. Governor Kelly Ayotte announced the passage of HB 302, which permits the state to allocate up to 5% of public funds into digital assets including Bitcoin and precious metals.
The move positions New Hampshire ahead of federal initiatives, contrasting with the TRUMP administration's failed proposal for a national Bitcoin reserve that relied solely on existing holdings. This legislative action signals growing state-level confidence in cryptocurrency as a treasury asset class.
Bitcoin Nears $95K as FOMC Looms, Trend Strength Grows
Bitcoin flirted with the $95,000 threshold as bullish momentum builds ahead of this week's Federal Open Market Committee meeting. Despite holding above critical support at $92,900, the path to $100,000 remains clouded by weakening EMAs and macroeconomic uncertainty.
Technical indicators suggest growing volatility. The Directional Movement Index's ADX component surged to 25.93 from 15.97 in two days, crossing the 25 threshold that typically confirms trend formation. Bullish pressure appears to be mounting, with the +DI indicator climbing to 12.2 from yesterday's 8.67 low.
88% of Bitcoin Supply Now in Profit as Price Rebounds to $97K
Bitcoin's market value to realized value (MVRV) ratio has retreated to 1.74, a historically significant support level, indicating reduced profit-taking activity. Glassnode data reveals 88% of BTC's circulating supply now sits in profitable territory, with losses concentrated among buyers who entered between $95K-$100K.
The cryptocurrency has surged from $83K to $97K in a fortnight, buoying both short-term traders and long-term holders who accumulated below $94K. This rebound from the long-term mean profitability threshold of 75% signals shifting market psychology among investors.
