Bitcoin price goes up on Amazon rumors

The Bitcoin price goes up after rumors that Amazon will use the cryptocurrency as a means of payment.

BEZOS COIN?: The insider also hinted that Amazon was exploring the possibility of developing its own currency for use on the website.

Unconfirmed rumors that Amazon will use Bitcoin as a payment method for its products have given the cryptocurrency a boost after the recent price drop.

Over the weekend, the company announced a position in digital currency and blockchain technology, which made it buzz on the reputation exchange.

On Monday, the London newspaper City A.M. about information from an insider source, who could tell that the online store giant plans to accept Bitcoin as a means of payment by 2021. In addition, Amazon is investigating the possibilities of developing its own local currency for use in the online store by 2022, according to the source.

The news comes after a long period of falling for the cryptocurrency.

The Bitcoin exchange rate has fallen sharply since its all-time high in March, largely due to China’s crackdown on cryptocurrencies. Among other things, the authorities decided to close down several large data centers that engage in so-called “mining”, a process that has been widely criticized due to its extensive energy consumption.

By mid-July, the Bitcoin exchange rate had halved from a record high of over $63,000 in March to less than $30,000. In comparison, Bitcoin is trading at $38,540 on Monday morning, up 12 percent for the day.

News twists the momentum

Both Bitcoin and other cryptocurrencies have proven to be very volatile, and have historically reacted strongly to news, as well as things like Twitter messages and statements from celebrities like Elon Musk. Among other things, the Bitcoin price fell sharply in May, after Musk declared that it would no longer be possible to pay for Tesla in Bitcoin for environmental reasons.

Cornell professor Eswar Prasad has also stated that he believes “the Bitcoin exchange rate is more sensitive to Twitter messages from celebrities than it is to inflation”.

The increased focus on Bitcoin’s environmental impact, as well as general criticism of the currency and its fundamental value, has marked the market’s cryptocurrency sentiment in recent months.

– The need for catalysts such as a couple of big news is important to get the momentum twisted now. Currently, there is a lot of bad news from China that is dragging the course down, despite the fact that the effect of the measures has already taken place in the market. A big news à la bitcoin purchase from Tesla in February would be positive, said analyst Vetle Lunde in Arcane Crypto earlier in July.

If Amazon confirms the rumors, it may be just the catalyst needed to reverse the negative trend.