According to @FarsideUK, the Bitcoin Core software repository has recently removed the policy limit on the size of OP_Return outputs (source: Twitter, May 6, 2025). OP_Return allows data to be embedded into Bitcoin transactions, and this policy change could enable larger data payloads on the blockchain. For traders, the removal of this guardrail may lead to increased use of Bitcoin for tokenization and data storage, potentially driving up transaction fees and increasing network congestion. These changes could impact Bitcoin's utility and trading volumes, as well as influence the development of new crypto assets and decentralized applications built on Bitcoin (source: @FarsideUK via Twitter).

According to BitMEX Research, the breakdown of overly prescriptive Bitcoin standardness rules is becoming more evident, as demonstrated in their latest analysis (source: BitMEX Research, May 4, 2025). This development may impact transaction validation and mempool behavior, potentially leading to higher transaction fees and delays during periods of network congestion. Traders should monitor Bitcoin network updates closely, as shifting standardness enforcement can affect transaction confirmation times and overall market liquidity. Staying updated on Bitcoin protocol changes is crucial for active traders to manage risk and optimize entry and exit strategies.