Bitcoin bolstered as Amazon appears to dip its toe into crypto world
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown spoke to Business Leader about Amazon’s recent move into cryptocurrency.
When a simple job ad appears to spark resurgence in the value of Bitcoin, it shows how the crypto world is salivating for every nugget of news about the future use case for digital currencies.
Although Amazon has scores of openings for blockchain specialists, it was the listing for a digital currency and blockchain product lead that has led to heightened speculation that crypto currency payments could be integrated on its platforms.
Given the might of Amazon Web Services, it isn’t surprising that the tech giant wants to be at the cutting edge of new payments technology and establishing a new digital currency is likely to be on the agenda. But the expectation that payment may also be accepted from the current crypto kids on the block has also led to a spike in their value. Over the past 24 hours Bitcoin has risen by 11%, Ethereum by 8% and Dogecoin by 11%.
Crypto fans are also hanging on every word of Elon Musk and his hint that Tesla could start accepting Bitcoin again is also behind the crypto bounce. The suspension of Bitcoin as a means of payment for Tesla cars sent the crypto world reeling in May, but in a debate with Twitter CEO Jack Dorsey, Mr Musk indicated that could change given mining has reached a tipping point, with much more renewable energy used instead of fossil fuels.
Crypto assets are also largely following sentiment in financial markets. The sharp fall in stock markets around the world a week ago, was mirrored in the crypto world, and the rebound came as fears receded about the impact of new variants on economic recovery.
The sensitivity of crypto coins and tokens remains stark, and given the uncertain landscape ahead, with central banks looking to develop their own digital coins, investors should be wary of speculating with money they can’t afford to lose.