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Bitcoin surges on speculation over Amazon

written by Bella Palmer
bitcoin

The world’s largest cryptocurrency soared more than 14 per cent, nearly reaching $40,000 per unit

The price of bitcoin surged again on Monday on speculation over Amazon entering the cryptocurrency sector after it posted a job seeking for a product leader to develop its digital currency.

Bitcoin soared more than 14 per cent in the past 24 hours, nearly reaching $40,000 per unit before settling around $37,000. The five-week intra-day high reached Monday comes after a long slide where it dipped under $30,000 from nearly $65,000 reached in April.

There is also speculation that the price surge may have also been due to traders buying up bitcoin to fill positions they were short on, having bet its value would fall further. But it's difficult to track short positions on the cryptocurrency.

Amazon's job listing says the company is looking for an experienced product leader to develop Amazon's Digital Currency and Blockchain strategy and product roadmap.

In a statement, Amazon rejected as fabricated a report that said it would be accepting payments in cryptocurrency by the end of the year, and that it could launch its own digital coin in 2022. But it did acknowledge that is exploring what the use of cryptocurrencies would look like on Amazon.

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, the company said.

Tom Forte, a senior research analyst who covers Amazon for the investment bank DA Davidson, said he doubts Amazon will accept bitcoin across its platform any time soon. Forte noted bitcoin accounts for less than 1 per cent of transaction payments on Overstock.com, one of the few online retailers to accept cryptocurrency.

It's been an effective mechanism for trading and speculation, but it hasn't shown to date to be a form of currency for payments, Forte said.

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