Bitcoin rises despite short covering, backed by Tesla, Amazon

By Arya M Nair, Official Reporter
  • Follow author on
Representational image

Bitcoin prices climbed to around $40,000, a rise for which some credited to traders exiting bets on declines and also to the ongoing rumors about Amazon’s alleged role in the cryptocurrency sector.

In Hong Kong, the largest crypto had risen as much as 15 percent to $39,681 before retreating some of its gains to trade at around $38,100. Other virtual currency, including second-ranked Ether, surged as well.

Amazon posted a job vacancy for a digital currency product lead last week, sparking rumors that it may accept digital coins for transactions. That builds on other recent supports for Bitcoin, including positive comments from Mr. Elon Musk and Ark Investment Management’s Ms. Cathie Wood. The coin’s price topped its 50-day moving average over the weekend, a pattern that some see as positive.

According to reports, more than $700 million in Bitcoin shorts were liquidated, the biggest in at least three months. Bitcoin futures activity soared as prices rose sharply. In a 10-minute trading session, over 1,000 contracts changed hands. As a result, in Hong Kong volumes in the July front contract were roughly 10 times the average.

Bitcoin remains around $27,000 off its mid-April high of nearly $65,000. It has been affected by criticism of the amount of energy used by the computer servers that support it, as well as a regulatory crackdown in China and increased official scrutiny in Europe and the United States.

Mr. Elon Musk, the CEO of Tesla, recently stated at a conference that he and SpaceX both own Bitcoin. He also stated that he would like to see the token flourish and that he has purchased Bitcoin, Ether, and Dogecoin. Ms. Wood of Ark suggested that companies should consider including Bitcoin in their financial statements.

Related: Tesla will likely start accepting bitcoin again as payment method; Elon Musk