Bitcoin plummeted back down to earth Monday afternoon, after Amazon (NASDAQ: AMZN) denied claims that it will begin accepting bitcoin as payment.
Bitcoin had a turbulent afternoon, rising to nearly $39,000 before crashing back to $37,000 within a span of several hours. It turns out that a widely-circulated media report from London’s City AM newspaper, which alleged that Amazon would begin accepting bitcoin as payment before the end of 2021, was false.
“Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true,” read a statement from Amazon. “We remain focused on exploring what this could look like for customers shopping on Amazon.” Although the reaction to the news was abrupt, not all of bitcoin’s weekend gains were erased.
Despite the opposing narratives’ recent influence on bitcoin’s price, coupled with recent bullish comments from Tesla (NASDAQ: TSLA) CEO Elon Musk and Ark Invest CEO Cathie Wood, Occam’s Razor still prevails. According to data published by Bybt.com, over $950 million worth of crypto shorts were liquidated on Monday, marking the largest liquidation since May 19. “I think the extent of the jump was probably driven by over-leverage shorts,” head of business development at cryptocurrency exchange Luno Vijay Ayyar explained to CNBC.
Information for this briefing was found via Reuters and CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.