Today, Bitcoin (CCC:BTC-USD) is trading down about 2% as we near the end of another week of volatile crypto moves. However, we are one week closer to the BTC Taproot update. What exactly does that mean for Bitcoin price predictions?
The Taproot update will be the first major update for BTC since the Segregated Witness (Segwit) update in late 2017. At the time, BTC-USD was trading at $4,000 and rallied to $20,000 in the months after. This time, the Taproot update will bring long-awaited features, such as increased transaction privacy, lower transaction fees, improved smart contract functionality and Lightning network improvements. Crypto fans are anxiously awaiting Nov. 14, the day the upgrade will go into effect.
This change will be in the style of soft fork, meaning that the current BTC blockchain will be updated, not replaced. Soft fork upgrades are seen as safer than hard fork ones because they are backward-compatible. A hard fork update can possibly lead to permanent chain separation, making past transactions invalid.
After reaching an all-time-high on Nov. 10 of nearly $69,000, the price of Bitcoin has plunged to $63,000 within the span of a few hours. DecenTrader attributes this to leveraged retail traders getting trapped at the top and panic-selling after the sudden decline. However, it’s certainly possible for Bitcoin to reach its high-water price again.
Let’s take a deeper look at analysts’ Bitcoin price predictions and what they are saying about this crypto.
BTC Crypto Price Predictions for the Weeks Ahead
- Fundstrat managing partner Thomas Lee believes Bitcoin could reach $100,000 by the end of 2021. Lee believes that the Chinese crypto mining bans earlier this year could become a positive as mining diversifies in other areas.
- DecenTrader has a price target of $85,000 to $90,000 in the weeks to come, remaining “bullish on higher time frames.”
- Fairlead Strategies founder Katie Stockton has a price target of $89,800, stating that a breakout to new highs should provide a positive, long-term trend move.
- JST Capital co-founder Todd Morakis has a price target of $72,000 to $75,000. Morakis is watching for a potential pullback but ultimately believes Bitcoin will trend higher in the long run.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.