Bitcoin Surges Before Tumbling Due to Amazon Rumour

London’s City AM newspaper contributed to the furor when it quoted an unnamed source as saying that Amazon was “definitely” looking at accepting Bitcoin before the end of the year. However, the high was short lived after Amazon confirmed it is not planning to accept crypto payments.

A spokesman for the company responded to the City AM story by saying that while Amazon has “Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true.”

“We remain focused on exploring what this could look like for customers shopping on Amazon.”
The company’s denial sent Bitcoin tumbling below $37,000. Litecoin and Ethereum were among other coins to fall.

The company has previously said that it is “inspired” by cryptocurrency and is “exploring what this could look like on Amazon”. It said that “We believe the future will be built on new technologies that enable modern, fast, and inexpensive payments, and hope to bring that future to Amazon customers as soon as possible.”

How could Amazon affect the future of cryptos?

Susannah Streeter, a senior analyst for Hargreaves Lansdown, said that crypto enthusiasts are “salivating for every nugget of news about the future of cryptocurrency.”

Ms Street said that “Amazon has scores of openings for blockchain specialists […] 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.”

However, she also commented on the risks of crypto trading: “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.”