After two weeks of consolidation below the previous high, Bitcoin (BTC) now looks set to surge higher this week as money flows back into the top crypto coin.
Indeed, the past couple of weeks have seen altcoins such as Ethereum and Solana rallying to new highs while BTC stayed relatively stable.
However, it seems that money is now rotating back into Bitcoin as traders take profits from their existing positions and start looking for the next opportunity.
But the interesting thing is that this all happened so suddenly, which has some people wondering whether some news triggered the initial move.
As always, there are many different theories circulating online so we’ll have a look at the most popular ones below.
A bullish tweet by Barry Silbert
Barry Silbert is the CEO of Digital Currency Group, the parent company of Grayscale which has over $56 billion of crypto assets under management.
On Sunday, he tweeted that it’s “Going to be a big week” and this caused a frenzy in the markets as traders started speculating on whether Barry was about to, or had already, made a big purchase.
Given Barry’s billionaire status, it’s hardly surprising that the market reacted the way it did.
In fact, looking at the Bitcoin chart and the exact time that Silbert tweeted, BTC has shot straight up since then.
But Barry isn’t the only reason for BTC rallying this week as there is a highly anticipated upgrade coming soon for Bitcoin as well.
Perhaps, this is why he made that tweet in the first place.
Bitcoin Taproot upgrade just days away
Within the next few days, Bitcoin will go through a network upgrade known as Taproot after receiving approval from 90% of miners around the world.
Taproot is a protocol upgrade that will improve the Bitcoin network’s privacy and efficiency, as well as smart contract capabilities.
This will be BTC’s first major upgrade since August of 2017 so there is naturally a lot of excitement around this event.
After Taproot gets implemented, Bitcoin will be able to compete with privacy coins in the market and potentially even Ethereum as a platform for decentralized finance services.
What’s more, is that BTC transaction fees are likely to be lowered as well, and this can attract many users who are priced out by Ethereum’s skyrocketing network fees.
These are exciting times to be involved in the crypto markets and things are looking very positive for the space as a whole.
Is Bitcoin a good buy now?
The cryptocurrency markets are booming right now, with coins hitting new highs on an almost daily basis.
As we have discussed before, the fourth quarter of the year tends to be lucrative months for the crypto space and so far this notion seems to be holding true.
If you’re looking to invest in BTC, remember to only use money that you can afford to lose as profits are not guaranteed and the markets remain as volatile as ever.
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