The price of the leading cryptocurrency Bitcoin jumped by more than 15% in a day less than two weeks ago after rumors that Amazon, the e-commerce giant, was looking into integrating the currency as a payment option for its customers. It all began on July 23 when a job listing by the company looking for a cryptocurrency and blockchain lead surfaced. The excitement around the news would intensify when City AM reported that an “insider” had revealed the company was planning to begin to take crypto payments by the end of the year. By July 29, the price of BTC had jumped from $32,000 to above $39,000 over the weekend. The most gains were registered on Monday when Bitcoin managed to see gains that you would have to go back several months for the last time this had happened.
By the end of Monday, Amazon’s spokesperson would denounce the rumors, much to the anguish of most Bitcoin proponents. Speaking to Reuters, the person would state, “Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true. We remain focused on exploring what this could look like for customers shopping on Amazon.”
The price would drop to the $36,500 level the next day owing to the announcement and begin to rise steadily, culminating in a peak above $42,000 on August 1. The price might have dropped from that level over the past few days; however, it has managed trade above the $37,000 level.
Volatility Is Common Within Crypto Markets
Volatility within cryptocurrency markets is nothing new however it’s not every day you see BTC moving by double digits within a short period. Many factors influence the volatility, including speculation, which creates great opportunities for traders and investors. The Bitcoin market is poorly regulated, and there have been accusations of market manipulation at times; however, most of the wild price swings have something to do with traders taking advantage of news and other developments around the market.
By crossing the $40,000-mark, Bitcoin was able to revisit levels last attained two months ago as the market corrected following Tesla’s decision to reverse its decision to accept BTC payments for its vehicles. A statement from its CEO Elon Musk indicated that the company was concerned with Bitcoin’s energy-intensive mining that was harmful to the environment.
These myths had been debunked in the past, with some sources indicating Bitcoin was greener than most competing industries such as gold mining, paper currency minting, etc.
Tesla Could Accept BTC Again
The market had seen sustained gains since the end of last year. And the fuel would be added to the fire after Tesla reported to have invested $1.5 billion of its cash reserves into Bitcoin. The news would see BTC rally above $64,000 by May until the payment discontinuation came around.
BTC would drop to $40,000 and struggle to maintain the level before, dropping below $30,000 by June 22. Fears of further crush were dispelled following the Amazon rumors. The resurgence has also been influenced by Elon Musk’s announcement that Tesla and SpaceX hold Bitcoin and don’t intend to sell. And the electric vehicle manufacturer could start accepting BTC payments again after “his criteria for its sustainability were met.”