Following a rumour that Amazon would be accepting cryptocurrencies as payments, Bitcoin and the rest of the crypto market shot skywards. However, now that the rumour has been denied by an Amazon spokesperson, what is likely to be the future trajectory for the crypto space?
A report from the London crypto news platform City AM, had cited an ‘insider’ within Amazon as saying that the marketplace giant would begin to accept cryptocurrencies as payments by the end of the year.
This spark (probably more like a fireball) lit the touchpaper that sent Bitcoin surging upwards out of its months of lethargy, taking the whole crypto market with it. Although Bitcoin did spike to over $40,000, it didn’t quite make a higher high from the price level of approximately $41,300 set back on 15 June.
Short positions were absolutely decimated as Bitcoin accelerated higher. More than 100,000 short traders were liquidated and upwards of $1 billion was wiped off their positions in total over the 24 hours from the start of the price rise.
The surge has now faltered given that Amazon has now denied the claim, according to an article on Aljazeera:
“Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true,” said a spokesperson from Amazon. “We remain focused on exploring what this could look like for customers shopping on Amazon.”
So, what now for Bitcoin?
According to Vijay Ayyar, of crypto exchange Luno:
Bitcoin’s current price volatility is part of a wider multi-wave correction since hitting a record in April, Ayyar said. The price could rebound to as much as $45,000 in the near-term before another potential drop to complete the correction, he said. “We’re still seeing the correction play out,” he added.
Other experts point to Bitcoin potentially being at the end of wave 4 of a 5 wave Elliot cycle, which began at the bottom of the last bear market. Wave 3 is the $64,000 all-time-high, while wave 4 is the correcting wave. Wave 5 is still to come and would take us past the previous all-time-high and on to a new market top.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.