Bitcoin Approaches $40,000 as Shorts Fuel Rally on Amazon Speculation

(Bloomberg) —

Bitcoin rose nearly $40,000 as a flurry of short-covering intensified a rally apparently sparked by speculation about Amazon.com Inc.’s involvement. in the crypto industry.

A job posting from the retail giant seeking an executive to develop the company’s “digital currency and blockchain strategy” has raised questions among analysts about whether the move could eventually lead to Amazon using Bitcoin as a payment method. accepts.

As the largest digital token to gain on speculation, investors rushing to hedge bearish bets fueled the rally, rising as much as 15% to $39,681 on Monday. More than $950 million worth of crypto shorts were liquidated on Monday, according to data from Bybt.com, the most since May 19.

“The magnitude of the jump was likely caused by over-leveraged shorts,” said Vijay Ayyar, Asia-Pacific head of Singapore crypto exchange Luno, while adding the Amazon rumors likely also played a part.

Bitcoin was up 12% to $38,684 at 8:24 AM in New York. Ether and other digital currencies also advanced.

Monday’s wave brought crypto markets back to life after being in the doldrums for months. On Binance, the largest crypto exchange, Bitcoin perpetual contracts rose as much as 30% in an hour’s early trading in New York, a sign of extreme volatility in one of the currency’s most liquid derivatives.

There has been less volatility in Bitcoin since mid-May and enthusiasm for crypto has faded somewhat due to a regulatory crackdown in China and criticism of the environmental toll it has taken.

The Amazon job posting was reported by CoinDesk last week.

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