Bitcoin Tanks Under $60,000 A Day After Taproot Update

Amid the broader correction in the cryptocurrency market, the world’s largest cryptocurrency Bitcoin (BTC) is down over 9% taking a momentary dip under $60,000 for the first time in a month. 

However, Bitcoin has recovered from its intraday bottom and as of press time, BTC is trading 7.68% down at $60,460 with a market cap of $1.137 trillion. The signs of imminent correction were visible over the last weekend as the long-term Bitcoin holders had started distribution for the first time in over six months. 

In short, the long-term holders had started profit-booking as the Bitcoin funding rates had also peaked out. Citing data from Glassnode, popular crypto analyst Will Clemente explained: “Long-term holders buy BTC into weakness and sell into strength. We’ve just gotten our first red prints on LTH net position change in over 6 months, showing bull market distribution has begun”. 

bitcoin distrubution

Bitcoin Long-Term Holder Distribution (Courtesy: Glassnode) 

The Bitcoin price correction comes just a day after one of the most important upgrades to the Bitcoin network I.e. Taproot. This is the first major upgrade to the core Bitcoin protocol in four years after the implementation of Segwit in August 2017. 

The Taproot upgrade brings greater transaction privacy and efficiency to the Bitcoin blockchain. This Bitcoin network upgrade serves introduces digital signatures that serve as fingerprints on every transaction taking place on the Bitcoin blockchain. 

Furthermore, Taproot adds something called Schnorr signatures that essentially make the multi-signature transitions unreadable thus adding an extra layer of privacy. 

One of the other game-changing improvements with Taproot includes the introduction of self-executing agreements dubbed smart contracts. Besides, Taproot also makes smart contracts cheaper and smaller in terms of their space occupancy on the Bitcoin blockchain. 

It also introduces smart contracts implementation on Bitcoin Layer 2 scalability protocol Lightning Network. Last week, the Bitcoin Lightning Network reached an all-time high capacity of 3215 Bitcoin. 

Bitcoin Lightning Network

Bitcoin Lightning Network (Courtesy: Glassnode) 

However, today’s Bitcoin price correction has eroded more than $100 billion of its investors’ wealth. 

Altcoin Bloodbath: All top Ten Altcoins Lose Between 10-15% In A Day

Just like Bitcoin, the entire altcoin space has lost more than $100 billion worth of investors’ wealth in the last 24 hours. As of press time, all of the top ten altcoins have lost anywhere between 10-15% individually. 

After hitting its all-time high above $4,800 levels last week, the world’s second-largest cryptocurrency Ethereum (ETH) has entered a severe correction. Currently, Ethereum is trading 9.45% down at a price of $4285 with a market cap of $507 billion. 

With its recent price correction, the Ethereum price has dropped below its trendline support levels. The next major area of support for ETH is $4,000. 

Ethereum trendline support

Ethereum Trendline Support 

Although ETH is seen losing major support levels, the institutional interest in Ethereum remains at its peak. As per the recent SEC filing, the institutional holding in Grayscale Ethereum Trust (ETHE) surged by 19% during Q3 2021 over the previous quarter. 

On the other hand, one of the top altcoin performers Solana (SOL) is also down 10% today after hitting its all-time high above $260 last week. Polkadot (DOT) remains as one of the biggest losers from the top ten list dropping more than 13% today. 

Crypto Market News: El Salvador Has More Bitcoin Wallets Than Bank Accounts

Latin American country El Salvador has achieved another major feat after making Bitcoin a legal tender earlier in September 2021. In just two months of launch, the number of Bitcoin wallets in El Salvador has surpassed the number of bank accounts, claimed President Nayib Bukele. 

This small Latin American country has been focusing heavily on Bitcoin adoption. Besides, El Salvador is creating an entire Bitcoin ecosystem inviting Bitcoin miners to use the surplus thermal energy available in the country. 

AMC Entertainment has announced that it is all set to accept payments in Shiba Inu (SHIB) from the next quarter facilitated by BitPay. The official announcement came from AMC Entertainment CEO Adam Aron on Monday, November 15. AMC has been going big on accepting crypto payments and already accepts payments in Bitcoin, Ethereum, and Litecoin. 

In a major revelation, Twitter CFO Ned Segal said that it doesn’t make sense for the social media company to buy Bitcoin. The statement comes despite Twitter founder Jack Dorsey being one of the biggest advocates of Bitcoin.