The Bitcoin Taproot upgrade, activated in November 2021, enhances functionality and privacy, potentially impacting its long-term price. It introduces Schnorr signatures, improving transaction efficiency, reducing fees, and enabling complex smart contracts. This boosts scalability and supports advanced applications like decentralized finance (DeFi). Privacy benefits from Taproot’s ability to mask multi-signature transactions, making them indistinguishable from regular ones, enhancing user anonymity. Long-term, these improvements could drive adoption by developers and institutions, increasing demand and supporting price growth. However, price effects depend on market sentiment, regulatory shifts, and broader crypto trends. While Taproot strengthens Bitcoin’s fundamentals, short-term volatility may overshadow its benefits. Analysts suggest its full impact on functionality will unfold over years,