Long-Awaited Bitcoin Upgrade Taproot Goes Live As BTC Consolidates

Bitcoin has undergone a long-awaited upgrade that seeks to enhance its privacy and scripting capabilities.

Taproot, the first major change to Bitcoin since SegWit (Segregated Witness) in 2017, was first proposed in 2018. The upgrade was locked in back in June and has now been activated at block 709,632.

Taproot enables MAST, which helps make smart contracts more efficient and private by only revealing their relevant parts during spending. It also aims to improve the privacy of the Lightning Network by making channels look like usual Bitcoin transactions.

Previously, market intelligence firm IntoTheBlock had mentioned Taproot as a potential catalyst for a BTC rally.

Ninos Mansor, partner at Arrington XRP Capital, published a report last month on Taproot saying that it will redefine the largest crypto by market cap.

“The upgrade could be a macro turning point for evolvability and innovation, merging the best of post-Segwit conservatism with the energy of new beginnings. It is a meta-upgrade, a chance to redefine what it means to contribute to Bitcoin, whether one is a miner, developer, or full node.”

At time of writing, a little over half of all nodes are signaling support for the upgrade. Segwit, Bitcoin’s last major upgrade, took over two years to gain 50% adoption, according to Woobull.

Bitcoin is trading at $65,370 at time of writing.

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix


Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/metamorworks


Tagged : / / / / /

Bitcoin sets up nail-biting weekly close after Taproot goes live

Bitcoin (BTC) traded above a key zone into the weekly close on Nov. 13 after the successful activation of the Taproot soft fork.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

What ETF rejection?

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding above $64,000 at 10 am UTC Sunday.

The pair had gained in the latter part of Saturday after briefly acting below $63,000 thanks to U.S. regulators rejecting what would have been the first spot-based exchange-traded fund (ETF).

Seemingly unfazed by the move, however, Bitcoin then returned to form, seeing local highs of $65,350 on Bitstamp before consolidating.

Far from lamenting the ETF news, Sunday was all about positive steps for Bitcoin, with market participants celebrating Taproot’s launch.

The biggest upgrade to the Bitcoin protocol since 2017, Taproot provides a host of benefits impacting everything from security to Lightning Network efficiency. It was first proposed seven years ago by developer Greg Maxwell and has now finally become reality.

“The real work will be in building wallets/protocols that build on top of it to make use of its advantages,” Bitcoin core developer Pieter Wuille said as part of comments Sunday.

“I’m very excited to see where that takes us.”

As Cointelegraph reported, soft forks have historically preceded bullish BTC price periods.

Can Bitcoin “save” the weekly close?

Sunday’s weekly close meanwhile sets up a challenge for bulls looking for a clean break above a six-month resistance level.

Related: Price analysis 11/12: BTC, ETH, BNB, ADA, SOL, XRP, DOT, DOGE, SHIB, LUNA

With Bitcoin characteristically putting in weaker price moves on Sundays and recovering on Mondays in recent weeks, the market stayed in the dark as the weekend came to a close.

“Looking for price to hold prev ath from April and this to be a higher low,” trader Pentoshi added analyzing daily timeframes.

“The range we don’t want to go back into is the one we just came from.”

BTC/USD 1-week candle chart showing range. Source: Pentoshi/ Twitter

“Moonvember” still holds an increasingly controversial end-of-month price target of almost $100,000.