Inflation fears sparks Bitcoin rally before Taproot – Crypto Roundup, Nov 15, 2021
November 18 2021 - 2:55AM
NEWSBTC
First major upgrade in four years set to accelerate Bitcoin
innovation After briefly eclipsing all-time highs on shocking
inflation figures, Bitcoin settled down to finish the week with 2%
losses as the long-awaited Taproot upgrade was activated At its
peak on Wednesday, Bitcoin flirted with the $69K level. Within a
few hours however, fresh fears of an Evergrande-induced financial
collapse swept over the market, dragging cryptoassets down
alongside the S&P 500. Adding to the blow, the Securities and
Exchange Commission then denied another spot Bitcoin ETF
application on Friday. This volatility capped gains in the altcoin
market, with most smaller cryptoassets finishing the week in the
same place they started. However, Zcash, and Litecoin, which both
share DNA with Bitcoin, enjoyed double-digit gains as their big
brother got an upgrade. This Week’s Highlights Taproot upgrade set
to accelerate Bitcoin innovation Bitcoin hits record high on
inflation fears eToro lists SushiSwap, Axie Infinity, Quant, and
Chiliz Taproot upgrade set to accelerate Bitcoin innovation
Bitcoin’s first major upgrade in four years rolled out on Sunday,
introducing Schnorr signatures and scripting capabilities to the
flagship cryptoasset. Known as Taproot, the upgrade will allow for
greater levels of privacy, cheaper transaction costs (particularly
for more complex transactions), and improved programmability for
simple applications such as multisignature schemes. The additional
functionality is expected to accelerate Bitcoin innovation over the
coming years, and could boost valuations too. SegWit, Bitcoin’s
last major upgrade, took place in August 2017 and was followed by a
monster rally that saw prices quadruple. Bitcoin hits record high
on inflation fears Ever since legendary investor Paul Tudor Jones
said Bitcoin was the “fastest horse in the race”, the cryptoasset
been more widely considered an inflation hedge and a viable
alternative to gold. This safe haven appeal was showcased on
Wednesday, when Bitcoin bolted out the stable on hot inflation
data, leaving gold behind as it surged beyond record highs near
$69K. Although the price fell shortly afterwards on fears of an
Evergrande default, Bitcoin’s reaction to the news cemented its
newfound role as an inflation hedge. This reflects the view of
Bloomberg analysts, who found in a recent study that “the
importance of inflation and hedging against uncertainty” have
become more important drivers for Bitcoin, “accounting for 50% of
price moves in the latest cycle relative to 20% in 2017.” eToro
lists SushiSwap, Axie Infinity, Quant, and Chiliz eToro has listed
SushiSwap (SUSHI), Axie Infinity (AXS), Quant (QNT), and Chiliz
(CHZ), taking the total number of cryptoassets available on the
investment platform to 40. SushiSwap is a decentralized exchange
based on the automated maret market model (AMM), Axie Infinity is a
Pokémon-inspired blockchain-based game, and Quant is an
enterprise-grade interoperability solution for connecting public
blockchains. Last but not least, Chiliz is the leading blockchain
for sports and entertainment — an industry close to eToro’s heart
as one of Europe’s biggest football club sponsors. Note: These new
cryptoassets are not yet available in the US. Week ahead As Bitcoin
consolidates around all-time highs, traders are keenly awaiting a
catalyst to tip prices towards $70K, or the much-anticipated meme
level of $69,420. In the week ahead, prices could be buoyed by talk
of inflation, which is likely to remain a hot topic amid earnings
reports in traditional markets. Elsewhere, Stellar could be in the
spotlight as the altcoin hosts its annual community conference on
Wednesday and Thursday.
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