Bitcoin sentiments were optimistic after nearly six weeks at a plateau. The cryptocurrency was able to briefly hit above the $40,000 price range with the help of bulls rallying the price after a recent sell-off.
It was shortlived, however, as Amazon denied rumors of accepting Bitcoin payments in the near future.
Bitcoin Price Bullish Rally
It recently started to look more optimistic for the world's largest cyptocurrency as Tesla CEO Elon Musk, Twitter CEO Jack Dorsey, and ARK Invest CEO Cathie Wood talked about Bitcoin in The B-Word Conference.
Musk shared that the all-electric vehicle company would likely open up to accepting Bitcoin for vehicle purchases again as it did earlier this year. The change of heart was due to a greater share of Bitcoin mining switching to renewable energy, CNBC explained.
Tesla suspended the Bitcoin mode of payment in May after expressing concern over the environmental implications Bitcoin mining has, particularly the use of fossil fuels to provide electricity for the super computers required to perform the minin tasks.
The Chinese government aslo cracked down on these cryptocurrency mining activities, which put pressure on the cryptocurrency and have made its price dip even more.
The price jump to reach $40,000 could also be contributed to the recent sell-off. As some investors sold off their holdings to cut losses and probably protect whatever earnings they have left, some buyers anticipate the "short squeeze" that accelerates the crypto's price rise. Short squeezes don't sustain too long and can cause prices to dip just as quickly as it rallied.
Reports of Amazon integrating Bitcoin as a mode of payment also helped the cryptocurrency price shoot up to 14.5 percent on Monday. However, prices also took a turn as Amazon denied rumors of accepting Bitcoin as a mode of payment in the near future.
Price of some cryptocurrencies rises, after Amazon reveals it is hiring an expert in the fieldhttps://t.co/v0fCktd0kW— BBC News (World) (@BBCWorld) July 26, 2021
Read Also: What Is a Bitcoin ATM? Let's Find Out!
Will Amazon Accept Bitcoin Payments?
Rumors of Amazon accepting Bitcoin as a mode of payment stemmed from a City AM article claiming that a company insider tipped the largest online retailer is ready to accept the cryptocurrency as payment this year. Other popular cryptos like Ethereum and Amazon's own "native token" will be integrated soon after.
The instructions for the cryptocurrency initiative reportedly came from Jeff Bezos himself. Although it was recently announced that the billionaire stepped down as Amazon CEO to the company's executive chair.
This speculation was also prompted by a job listing the company posted last week for a "Digital Currency and Blockchain Product Lead," The Verge explained. In the listing, Amazon said it was looking for someone to explore how the company could integrate cryptocurrency technology into its business.
Amazon admitted to having an interest in the space, as they told Reuters. However "the speculation that has ensued around our specific plans for cryptocurrencies is not true," The Amazon spokesperson said. They added that the company is more so focused on exploring what it could look like for customers shopping on Amazon.
Bitcoin is currently back down to the $37,000 range after that $40,000 peak. However, it is a break from the trading slump of last week which only saw the price trading at the $29,000 to $32,000 range.