Why did Bitcoin spike on Monday? Speculation Over Amazon Plan?
Bitcoin surge on Monday to close to $40,000, attributed to some traders who gave up discounted bets. On the other hand, continuing speculation about Amazon’s possible involvement in cryptocurrency transactions.
Why did Bitcoin spike?
There is no doubt that everyone asking the same question about why is bitcoin going up today? However, the largest crypto rose as much as 15% to $ 39,681 before cutting part of the rally to trade at roughly $ 38,600 as of 7 am in London.
Other virtual currencies also recovered, including Ether, which ranks second in the ranking.
“Over-leveraged shorts likely drove the extent of the jump,” said Vijay Ayyar, head of Asia Pacific at crypto exchange Luno in Singapore, while adding that rumors about Amazon likely had a role to play as well.
Amazon Accepts Bitcoin?
Meanwhile, Amazon announced a job opening for a digital currency product leader last week, sparking speculation that it might accept digital currencies for transactions.
Therefore, it builds on other recent support for Bitcoin, including positive comments from Elon Musk and Cathie Wood of Ark Investment Management LLC.
Over the weekend, the coin price surpassed its 50-day moving average, a trend that some consider positive.
More than $ 700 million in Bitcoin shorts (sold) on Monday, the most of any day in at least the last three months, according to data from Bybt.com.
As prices rose higher on Monday, activity in Bitcoin futures increased. More than 1,000 contracts changed hands in a 10-minute trading window.
As a result, volumes on the July front contract were around 10 times the average at 9:20 am in Hong Kong.
Bitcoin Live Chart:
Bitcoin price prediction
Meanwhile, Crypto specialist publications predicted that Amazon had included a job posting related to digital currency purchases earlier this year. Therefore, it could increase the price of Bitcoin a little bit.
At the same time, many media houses claiming that Amazon to accept bitcoin for few days. But there is no solid information coming from the Amazon side.
Bitcoin remains around $ 27,000 from its mid-April high of nearly $ 65,000. It has been affected by criticism of the energy consumed by the computer servers that sustain it.
Therefore, a regulatory crackdown in China and more severe official scrutiny in Europe and the United States.
Musk, CEO of Tesla Inc., which already owns Bitcoin, revealed at a conference last week that his space exploration company SpaceX does, too.
Also, he added that he would like the token to be successful and that he bought Bitcoin, Ether, and Dogecoin. Ark’s Wood said that corporations should consider adding Bitcoin to their balance sheets.
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