Monday 26 July 2021 12:29 pm

Bitcoin surges as Amazon dips its crypto toe and Elon Musk mulls return

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.

Over the past 24 hours Bitcoin has risen by 11 per cent, Ethereum by 8 per cent and Dogecoin by 11 per cent.

Given the might of Amazon Web Services, Susannah Streeter, a senior investment and markets analyst at Hargreaves Lansdown in London, is not surprised that the tech giant wants to be at the cutting edge of new payments technology.

“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,” Streeter said.

Elon Musk interview

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, Streeter pointed out.

“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, Musk indicated that could change given mining has reached a tipping point, with much more renewable energy used instead of fossil fuels,” she added.

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,” Streeter concluded.