Bitcoin soars as Amazon could accept crypto for payments
Bitcoin has seen a huge rally, testing the psychological $40 000 level, as Amazon could accept cryptocurrency for payments.
Bitcoin has experienced its biggest rally in months as the cryptocurrency tests the psychological $40 000 level on July 26.
The reason behind the surge is due to eCommerce giant Amazon reportedly set to use cryptocurrency as payments for goods.
Could this be the start of a long-awaited price rally for the crypto king or is it merely a fleeting surge? In this article, we will look at the cause behind Bitcoin’s sudden change in fortune as well as whether you should snap up crypto coins.
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Bitcoin rally
Bitcoin was trading at around $38059.84 on July 25, up 11% from the previous week.
Bitcoin’s rally helped lift rival cryptocurrencies by 6% adding more than $114 billion in value in 24 hours to the crypto market. More than $700 million of Bitcoin shorts were liquidated on July 26, the highest in three months. More than 1000 contracts changed hands within a 10-minute trading window.
The rally comes after mass sell-off stocks which saw Bitcoin drop below $30,000.
Amazon to accept cryptocurrency for payments
Amazon is searching for a digital currency and blockchain expert as the company takes a more serious look at cryptocurrencies.
Amazon’s payments acceptance and experience team is seeking to hire an “experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap.” This has led many experts to believe a future where consumers will be able to purchase goods from Amazon using digital currency is on the cards.
Amazon currently does not accept cryptocurrencies as payment for its products. With its new hire, this could change as the company said it’s exploring what a crypto future could look like for the eCommerce titan.
Record high, disastrous low
The cryptocurrency market reached record highs and suffered a disastrous retraction in April 2021 when Bitcoin reached a record of $63,000 only to collapse to $30,000. Yet despite the recent pullback, crypto has grown tremendously. Bitcoin has amassed an astonishing 209,000% return on investment in 10 years, making it one of the best-performing assets of the past decade.
Bitcoin remains some $25 000 off its mid-April high of $63 000.
Red Flag – China crackdown
China is set to crack down on cryptocurrencies which experts believe could lead to an outright ban on holding tokens.
China launched a new campaign against cryptocurrencies. The country hopes to curb miners and block crypto-banking services and trading. The moves have fueled Bitcoin’s major drop to about half its mid-April record near $65,000.
Overall
The crypto market and underlying blockchain technology are still in their infancy in terms of global adoption. In recent months, many institutions have invested in crypto and El Salvador has plans to use digital coins as legal tender.
The crypto market is extremely volatile and can be swayed by rumours and influencers more than most. It remains to be seen whether the recent surge can galvanize bulls to push Bitcoin to $63 000 and beyond.
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