Bitcoin price witnesses largest single day jump in six weeks riding on speculation that Amazon is jumping on the crypto bandwagon

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Bitcoin price witnesses largest single day jump in six weeks riding on speculation that Amazon is jumping on the crypto bandwagon
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  • Bitcoin rose as much as 12.5%, hitting the $39,850 mark in no time, the highest in six weeks. Ether too followed with a three-week peak of $2,344.
  • The entire cryptocurrency market added a whopping $114 billion in value.
  • It surged after Amazon confirmed its plans of venturing into the digital currency space. It could potentially accept Bitcoin payments in the future.
  • Similarly, Twitter and Tesla have also recently shown their interest in further investing resources in the crypto space.
After a consistent bearish run for weeks, cryptocurrencies have finally managed to sideline the short-sellers by a considerable margin. Bitcoin rose as much as 12.5%, hitting the $39,850 mark in no time, the highest in six weeks.

Ether too followed the trend and hit a three-week peak of $2,344. The entire cryptocurrency market added a whopping $114 billion in value, according to Coin Market Cap.

Furthermore, the weekend gain put Bitcoin above its 50-day moving average for the first time since May 9. While analysts were concerned about Bitcoin breaching the lower limit of $30,000, the recent bull run has reinvigorated a reverse trend thanks to Amazon.

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The American e-commerce giant intends to accept payments in Bitcoin by the end of 2021. An insider familiar with the matter reportedly told City A.M. that the company is serious about venturing into digital currencies and is actively exploring all options.

What led to the sudden spike?


Business Insider found an Amazon job listing that seeks a candidate who can develop its Digital Currency and Blockchain strategy. They'll be responsible for the Amazon Payment Acceptance & Experience Team, which is an indirect and corporate way of saying Amazon intends to delve deep into the world of cryptocurrencies and blockchain. The product lead will work closely with teams across Amazon, including Amazon Web Services (AWS).

"We're inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon," an Amazon spokesperson later confirmed. "We believe the future will be built on new technologies that enable modern, fast, and inexpensive payments, and hope to bring that future to Amazon customers as soon as possible."
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Big Tech and small countries are the keenest


While 2021 has been a very turbulent year for cryptocurrencies, their adoption is consistently increasing. On one side, smaller countries like El Salvador are opening up to the idea of a completely decentralised currency. On the other, technology companies are actively trying to incorporate features that make their offering future-proof. China's crackdown on mining was a difficult period for the community, but large-scale migration from the country is now automatically bridging the vacuum.

Similarly, Twitter CEOJack Dorsey also revealed that digital currency was a "big part" of the social media firm's future a few days ago. Around the same time, Tesla CEO Elon Musk said that it'd likely start accepting bitcoin for vehicle purchases again as a more significant share of bitcoin mining switches to renewable energy.

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It can be said that Amazon is quite late to the party as global giants like Visa and Mastercard have already started processing cryptocurrency payments. And, selling e-commerce goods could be a potential problem because of the high volatility of cryptocurrencies — the biggest drawback at the moment.

Despite the challenges, companies are more than willing to venture out of their comfort zone in hopes that cryptocurrencies may be the next big thing. Amazon and others are still in the process of evaluating their options, and the timelines suggested are variable. But, they seem to be coming around to the fact that cryptocurrencies are getting too big to ignore.

For a more in-depth discussion, come on over to Business Insider Cryptosphere — a forum where users can deep dive into all things crypto, engage in interesting discussions and stay ahead of the curve.

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SEE ALSO:
India finally explains its problem with private cryptocurrencies and why it is coming up with its own CBDC
China wants to use crypto for insurance as it focuses on the adoption of digital yuan
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