Bitcoin’s Taproot upgrade, implemented in November 2021, enhances functionality and privacy, potentially impacting its long-term price. It introduces Schnorr signatures, improving transaction efficiency, reducing costs, and enabling complex smart contracts. This upgrade boosts scalability by optimizing data usage on the blockchain, making Bitcoin more competitive with platforms like Ethereum. Privacy benefits arise from masking multi-signature transactions, blending them with regular ones, which could attract institutional adoption. Long-term, Taproot may strengthen Bitcoin’s utility and appeal, supporting price growth if demand rises with improved features. However, price effects depend on market dynamics, adoption rates, and macroeconomic factors. While some argue it’s a bullish catalyst, others see limited immediate impact due to Bitcoin’s entrenched store-of-value narrative. Over time, Taproot could solidify Bitcoin’s fundamentals, indirectly influencing its valuation as a decentralized asset.