Bitcoin price to go wild in anticipation of Taproot upgrade and spot ETF approval
- Bitcoin price has recovered from a drop below $65,000 ahead of BTC's first upgrade in four years.
- As Bitcoin becomes more focused on privacy, holders expect the upgrade to fuel BTC's end-of-year rally.
- Two key events, the Taproot upgrade and the SEC's decision on the VanEck Bitcoin spot ETF, are lined up ahead of November 14.
Analysts expect higher volatility in Bitcoin prices ahead of two key events. The approval of a Bitcoin spot ETF could be a watershed moment for the biggest cryptocurrency, while the Taproot upgrade is expected to provide a higher adoption rate for BTC.
Bitcoin prepares for massive rally ahead of key upgrades
Bitcoin price dropped by over $6,000 on November 11, as Cardano, Solana and Polkadot geared up for a comeback. Important updates in the Ethereum-killer's networks drove prices higher, and analysts expected a spike in volatility, which held down BTC price. The largest asset by market capitalization has now recovered from the drop and is trading above $65,000 at the time of writing.
The Taproot upgrade is expected to enhance Bitcoin's privacy and drive adoption of the cryptocurrency higher. The upgrade is likely to occur at the end of this week or early next week. The timing of this milestone in the Bitcoin network coincides in time with the Securities & Exchange Commission's (SEC) decision on the Bitcoin spot ETF.
The VanEck ETF approval is likely to trigger a rally in Bitcoin price since the approval of the ProShares ETF sent the asset to a new all-time high. Traders have awaited the SEC's approval on a Bitcoin spot ETF, as experts consider that the Bitcoin Futures market is nearly saturated. Actually, many experts consider that Bitcoin Futures ETFs are an expensive way to expose a portfolio to BTC.
Colin Wu, a Chinese journalist, recently commented on the importance of the Bitcoin Taproot upgrade and shed light on the timeline of the remaining ETF approvals.
The activation of the Bitcoin Taproot upgrade on November 14 and the US SEC's approval of the VanEck Bitcoin spot ETF may increase the volatility of the Bitcoin market. pic.twitter.com/ycfEEupiF1
— Wu Blockchain (@WuBlockchain) November 12, 2021
Bitcoin futures data from OKEx, a leading Asian cryptocurrency exchange, shows that retail traders expect the BTC price to continue its bull run. BTC is on track to hit a new all-time high again this week.
FXStreet analysts have evaluated the BTC price trend and noted that Bitcoin currently presents the most bullish setup ever.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
