Market updates and forecasts

Forexmart's Market Analysis section provides up-to-date information about the financial market. The overviews are intended to give you an insight into current trends, financial forecasts, global economic reports, and political news that influence the market.

Disclaimer: ForexMart does not offer investment advice and the analysis provided should not be construed as a promise of future results.

BTC loses ground after Amazon denies bitcoin acceptance rumors
02:18 2021-07-27 UTC--4
Exchange Rates analysis

Bitcoin began to grow rapidly on Sunday. The catalyst for its rally was a report saying that an anonymous insider at Amazon had news that it would start to accept bitcoin and other cryptocurrencies by the end of the year. The insider also claimed that Ethereum and Cardano would be next in line

Besides, the reason for such rumors was a job vacancy on the company's website. The e-commerce giant posted a new vacancy, seeking a specialist in blockchain and cryptocurrencies.

Even an unconfirmed report led to the explosive growth of bitcoin. Having assessed the prospects for the possible integration of bitcoin into the payment systems of the largest US retailer, traders made bullish calls on BTC and other popular cryptocurrencies. So, digital assets soared.

At night after the weekend, bitcoin surged by almost 12%, or more than $4,000. During Monday, the quote continued to grow, while rumors were quickly spread across the market and lit the entire crypto community on fire. As a result, at the end of the day, BTC ballooned above $40,000.

However, the coin failed to consolidate at its peak. The price began to fall sharply immediately after Amazon denied the news. "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," a spokesperson from Amazon said.

Amazon assured that it would not introduce bitcoin as a means of payment until the end of the year but at the same time would focus on further studying cryptocurrencies.

BTC, which spiked a day earlier on rumors, fell back by more than 4% on Tuesday morning. At the time of preparing this article, BTC was trading at the $36,000 mark.

analytics60ffa434e96d1.jpg

Other popular tokens also lost momentum. For example, ether sank by more than 6% to $2,188. Cardano drooped by almost 8%, falling to $1,24. Dogecoin declined by 12% to $0.199.

Meanwhile, analysts warn that the crypto market will continue to decrease in the coming days. After Amazon completely debunked the rumors, virtual assets lost all the gains obtained during their recent rally. Therefore, there is a risk that this week bitcoin will again return to the range of $30,000-34,000.

The fall of the crypto market may also be triggered by Tesla's financial report for the second quarter, which was published yesterday. Contrary to optimistic expectations, Elon Musk's electric vehicle company reported no new sales or purchases of digital assets. The company holds $1.3 billion in bitcoin.

Tesla announced in February that it had purchased $1.5 billion worth of bitcoin. However, later the company trimmed its bitcoin position by 10%. Musk also said that his privately-owned companies, SpaceX, holds bitcoin.

Top Top