Bitcoin Bull Trap: Taproot Upgrade
Analysts warn on a price crash as the Bitcoin network is getting warm for the first upgrade since 2017.
Taproot day is finally here.— The Wolf Of All Streets (@scottmelker) November 13, 2021
Cryptocurrencies fail to hold the all-time price highs from earlier this week as traders fear to witness a spike in the trading volatility, triggered by Bitcoin Taproot upgrade, aiming to improve privacy and efficiency.
"Bitcoin’s realized volatility has consistently underperformed implied volatility over the past four months. The spread between realized and implied volatility has widened to the highest levels since September 18." @NYDIG_BTC pic.twitter.com/yZ6o8LxsZI— Bitcoin (@Bitcoin) November 10, 2021
Bitcoin and Ether have more than doubled since May and added over 60% since September this year.
Yesterday it was double top and #bitcoin about to enter a bear market, today new paradigm of money up only to 100k.— Lark Davis (@TheCryptoLark) November 12, 2021
I love this market 🤣
Analysts see that too many traders have entered bullish trades, making Taproot Upgrade into a Trap of Bulls event. Too many speculators are looking now beyond bitcoin for additional profit opportunities, totally ignoring a possible price correction.
Just 2 more sleeps until #Bitcoin's Taproot Activation 🟩🥕— Altcoin Daily (@AltcoinDailyio) November 13, 2021
Funds inflow into Bitcoin thematic products have just hit a record $6.4 billion this week, in total.
The average amount of #Bitcoin being deposited on exchanges is rapidly surging.— Mr. Whale (@CryptoWhale) May 18, 2021
Nearly 30,000 $BTC was transferred in a single hour yesterday, which is the 2nd largest inflow since the March 2020 crash!
People are scared, and getting ready to sell. Be careful everyone. pic.twitter.com/eRNnIolDU1
What is Taproot?
Bitcoin’s first major upgrade since 2017, Taproot, a highly anticipated upgrade to the leading cryptocurrency. It will go live in several hours, anticipated to start at block 709,632. You should not confuse it with a smart contract:
I’m seeing a surprising amount of coverage of Taproot where people are confusing it as Bitcoin smart contracts.— muneeb.btc (@muneeb) November 12, 2021
Taproot is terrific, and I support it, but it is absolutely not smart contracts.
Taproot is supposed to enable Schnorr signatures, with more private transactions:
- Flexible multi-signature transactions: Merkelized Abstract Syntax Tree (MAST) Allowing the sender and recipient to jointly sign a Bitcoin payment transaction.
There was $31 billion of value settled on the bitcoin network in a single day last week.— Pomp 🌪 (@APompliano) October 10, 2021
This is an all-time high for a single day of settlement value.
The global, decentralized payment system continues to become more dominant. (h/t @kerooke) pic.twitter.com/a6Q2FbPY3C
- Signature for superior security
- Low fees
Taproot 🌱 enables invisible Coinswaps which for the first time breaks the traces of your coins similar to a coinjoin. Imagine purchasing 1 BTC off an KYC exchange and immediately coinswapping it trustlessly with someone else. Chain analysis companies now have no chance.— softsimon (@softsimon_) November 12, 2021
Taproot will enable new toolboxes and solutions, developers would need months if not years to implement. This so-called agreed Soft Fork update will bring value to the network but not necessarily a wild price boost for Bitcoin.
Taproot— nic cubeter (@nic__carter) June 12, 2021
- improved sustainability of bitcoin by ++ data density of txns (med. term, effects mostly known)
- unlocks more complexity (while ++ privacy) in conditional txns (long term, effects unknown)
- proves that bitcoin upgrades still work! (short term, effects known)
This Taproot Upgrade anticipation looks already overcrowded.
People say this often but this is actually the first time I do...— CryptoSeñorita® (@CryptoSenorita) November 12, 2021
this may literally be the last dip before a HUGE rally...#Bitcoin Taproot upgrade happening this weekend + the middle of November Q4 on a bull run has always been super bullish...
Buckle up people!! 🚀