Bitcoin fell under $37,000 after just briefly going past $40,000 after Amazon.com Inc.’s denial that it posted a job listing for a digital currency executive as a part of a plan to accept a token for payment.
Earlier on Monday, the job posting from Amazon sought an executive to create the company’s “digital currency strategy” caused questions among analysts about whether the move might lead to Amazon accepting Bitcoin as payment.
Shortly before 4 p.m. however, an Amazon spokesperson denied that the company will be accepting Bitcoin for payments this year. The announcement caused its price to fall down to $37,598.
Bitcoin has now fallen by as much as 3.5% and was selling for around $36,620. Rival coins including Litecoin and Ether also lowered.
Investors rushing to cover their bearish investments had drove the earlier uptick that pushed the coin at one point higher by 17% this Monday to $40,545, its highest point since June 15. Over $950 million of crypto shorts were liquidated this Monday, the highest since May 19, according to Bybt.com.
“Shorts were mounting as we were going down, assuming we were thinking of a minimum of $25,000, which was anticipated across the board,” said Vijay Ayyar, with crypto exchange Luno. “But then we saw heavy accumulation around $29,000 which caught many of those shorts and then led to the spring higher.”
Bitcoin’s current value volatility is one part of a wider multi-wave move after hitting a record back in April, Ayyar said. The price might rebound to as high as $45,000 in the short-term before another possible decrease to finish the correction, he said.
“We are still watching the correction happen,” he added.
Meanwhile, Bloomberg reported a United States probe into Tether is researching whether or not executives behind it committed bank fraud. Ether was lower by as much as 5%, reversing its Monday advance before an upgrade was due on Aug. 4 that will lower the number of outstanding tokens by destroying a number of them every time it is used to drive transactions on the world’s top blockchain.
Author: Steven Sinclaire