Pulling the market along with it, Bitcoin briefly touched the $40,000 mark yesterday for the first time since May. The crypto market, particularly Bitcoin, has been turbulent for the past 24hr following City AM’s report. The British newspaper claimed that Amazon is looking to accept payments in Bitcoin by the end of the year and is looking into its own token by 2022. While the source behind the tip remained unrevealed, only to be mentioned as an insider, the market shot for the uptrend. Struggling towards the lower end of $29k for the past week, BTC took an impressive streak to almost 40K.
Trading at $37,356 at the time of writing, Bitcoin is down by 2.11% in the last 24hrs.
Where BTC investors were thrilled by the sudden bounce for the first time in months, the entire market was painted red today. Rumors of the e-commerce giant exploring crypto were taken down this morning as a spokesperson from Amazon respectfully denied the claims in an email, saying:
“Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true.”
Since the clarification, along with BTC, altcoins also took a hit and subsequently fell down. Although Bitcoin has not struck back down under $30k, Amazon’s denial did pull a number on the market on what was a long-awaited uptrend. While Amazon did deny both the claims- accepting payments in bitcoin and its own token by 2022. However, they did mention that Amazon is focusing on exploring crypto and see how it pans out for the customers shopping on their platform.
Another reason why the Amazon rumor contributed to the market rocketing up was due to a job posting for a “digital currency and blockchain product lead” last week. Even though the company’s intentions into crypto were widely overstated, it collided with a bounce-back that the market was already prepared for.
Apart from Amazon, technical indicators were also actively contributing to the recent bull, aligning almost perfectly with the on-chain data. Resulting in a massive streak of liquidations of BTC short positions or short squeeze. Gushing the impact and pushing the price further up, millions of dollars of shorts were getting squeezed out.
Furthermore, last week, analyst ‘CryptoBirb’ took to Twitter and mentioned that the markets were ready for a major bounce and the recent bear could be one big correction. Analyzing net unrealized profit/loss, the analyst stated:
“NUPL suggests it’s as oversold as in September 2019 or September 2020 when it was trading at 6-9k USD. We’re lucky if we get 23-24k, but market is ready for major bounce and final leg up in November-December imo.”
Despite a rather rich history of FOMO-driven massive fluctuations in the market, the crypto market, although miles ahead from where it started, still lacks regulatory support. However, institutional interest and in full disclosure, temporary withdrawal (Elon Musk) has vividly dictated the market this year. Chinese crackdown was also a contributing element that pushed the market further down the line.
After months of correction, the market is undoubtedly oversold, along with which, institutional support is stable. Furthermore, the concern of environmental damage due to unsustainable energy consumption in bitcoin mining is being replaced by contrary findings. More than anything, the market is desperately in need of awareness and education around cryptocurrencies for the market to become unchained from unnecessary FOMOs and FUDs.