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Bitcoin inches higher after Taproot upgrade

By Mensholong Lepcha

05:03, 15 November 2021

An illustration of bitcoin
An illustration of bitcoin – Photo: Shutterstock

Bitcoin was trading above $65,000 on Monday after the activation of its highly anticipated Taproot upgrade, which is aimed at improving the privacy and utility of the Bitcoin network.

On Monday, Bitcoin (BTC) rose 1.7% over the last 24 hours to $65,865.28 in early Asia trade.

Bitcoin’s first major upgrade in four years, Taproot, was activated on Sunday.

“Unanimously supported”

“Taproot is arguably the most important and anticipated upgrade to the Bitcoin network since the Segregated Witness upgrade in 2017— a controversial upgrade that would divide the community and spawn the Bitcoin Cash hard fork,” said Sofia Blikstad, analyst at Arcane Research.

“The fact that Taproot is almost unanimously supported highlights just how significant this coming upgrade is.”

“Taproot is a proposed upgrade of the Bitcoin protocol that promises increased privacy of multi-signature transactions and to unlock the potential for smart contracts to run on the Bitcoin network,” Blikstad added.

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VanEck’s spot Bitcoin ETF rejected

It is most likely that the market had already priced in the anticipated Taproot upgrade, having seen Bitcoin prices rise as much as nearly 50% over the last three months.

ETH/USD

3,068.55 Price
-0.430% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.16 Price
+2.640% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BTC/USD

64,233.50 Price
+0.190% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

XRP/USD

0.52 Price
+1.590% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

However, gains over the last seven days were muted for the bellwether cryptocurrency at 0.8%.

Euphoria from recent bitcoin exchange-traded fund (ETF) approvals fizzled out after market watchdog US Securities and Exchange Commission rejected VanEck’s spot Bitcoin ETF application last week.

Crypto.com coin surges

Elsewhere, the number two cryptocurrency Ether (ETH) inched 1.4% higher to $4,703.97. Blockchain platforms Solana’s SOL and Cardano’s ADA rose 2.8% to $243.53 and 0.7% to $2.05, respectively, in early Asia trade on Monday.

Meme coins Shiba Inu (SHIB) slipped 0.9% to $0.00005274, while rival Dogecoin (DOGE) edged 0.8% higher to $0.2636.

Crypto.com coin (CRO) was the top gainer on Monday jumped over 15% to $0.4765 to take its seven-day gain to over 28%.

Read more: Digital assets use highest by Asian institutional investors

Markets in this article

BTC/USD
Bitcoin / USD
64233.50 USD
124.6 +0.190%
ADA/USD
Cardano / USD
0.48530 USD
0.01239 +2.640%
ADA/USD
Cardano / USD
0.48530 USD
0.01239 +2.640%
CRO/USD
Crypto.com Coin / USD
0.12703 USD
0.00095 +0.770%
CRO/USD
Crypto.com Coin / USD
0.12703 USD
0.00095 +0.770%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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