Monday morning seems to have brought a cryptocurrency rally like we haven't seen in months. The price of bitcoin rose about 15 percent, approaching $40,000. Ether, the second most popular cryptocurrency rose less than 10 percent.
One of the main reasons for the recently dormant cryptocurrency market revival could be the news coming this time not from Elon Musk or Tesla, but Jeff Bezos and Amazon.
Amazon is looking for a specialist
As reported by the City A.M. portal, which is owned by a newspaper of the same name that focuses on business content and is distributed in and around London, Amazon is said to be preparing for a cryptocurrency offensive.
The tech giant was said to be starting a search for a person to fill a new position regarding cryptocurrencies and blockchain technology. People familiar with the matter say the company intends to initially implement payments in bitcoin, followed by ETH, cardano or BCH, and then create its own token. The adoption of bitcoin and other major cryptocurrency projects could contribute to significant changes in the sentiment that has prevailed in this market since May.
A sizable decline, lethargy and awakening?
From its April peak above $64,000 to last week's bottom at $29,000, the price of bitcoin fell 54 percent. The price of ETH in US dollars fell from over $4,000 to $1,700, a bump from its peak of 60 percent. Since then, interest in the market seems to have waned, along with a drop in volatility.
Today, in turn, volatility seems to have increased thanks to another phenomenon, which was the short squeeze. This means the dumping of positions on the fall of the bitcoin price from the market and buying them back very quickly, which could raise the price even faster. According to bybt.com, short positions worth almost $1 billion were swept off the market.
Thus, it seems that the hot summer may still heat up the situation on the cryptocurrency market, which seems to be waking up from its lethargy after the May declines.
Daniel Kostecki, chief analyst at Conotoxia Ltd. (Forex service of Cinkciarz.pl)
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