What just happened? Just as we’ve seen many times in the past, the price of Bitcoin has tumbled after a widespread rumor was refuted by those it involved. In this instance, Amazon has denied that it plans to accept the crypto as payment on its platform before the end of the year.
Yesterday saw Bitcoin surge past $40,000 for the first time since mid-June on the back of reports that Amazon would soon be accepting it as payment, the result of a job ad from the company looking for a “Digital Currency and Blockchain Product Lead.”
An alleged insider told City A.M that Amazon’s embrace of BTC would happen in 2021 and that it would eventually accept other cryptocurrencies, in addition to investigating its own token. All of which pushed Bitcoin above $40,000.
But the boost was short-lived. Amazon has now confirmed the report’s inaccuracy, though it admits to having an interest in crypto.
“Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true,” said a company spokesperson. “We remain focused on exploring what this could look like for customers shopping on Amazon.”
Bitcoin fell 6% following the statement and is $37,620 at the time of writing. Ether, Cardano, Dogecoin, and Stellar have also seen their prices fall.
Bitcoin has had a rollercoaster year so far, having seen its price jump following Tesla’s investment and announcement that it would accept BTC as payment, then falling when Elon Musk backtracked over environmental concerns. The CEO recently said the EV maker would “likely” start accepting Bitcoin again, increasing its price by 8%.