Bitcoin Surges Amid Short Covering, Speculation Over Amazon Plan

(Bloomberg) —

Bitcoin surged near $40,000 as a crypto-related job ad from Amazon.com Inc. stoked speculation about the company’s involvement in the industry.

The job posting, which was reported by CoinDesk last week, said the Amazon is looking for an executive to develop the company’s “digital currency and blockchain strategy.” Analysts have also wondered whether the move could eventually lead to Amazon accepting Bitcoin as a method of payment.

Bitcoin rose 11% to $38,302 as of 11:07 a.m. in London, and earlier prices came within a few hundred dollars of reaching the $40,000 mark. Ether and other digital currencies also advanced.

The surge on Monday brought crypto markets back to life after they’ve been stuck in the doldrums for months. There’s been little volatility in Bitcoin since mid-May and the enthusiasm for crypto has dissipated amid a regulatory crackdown in China and criticism for its toll on the environment.

Some analysts said short covering also fueled the gain. More than $940 million of crypto shorts were liquidated on Monday, the most since May 19, according to data from Bybt.com.

“The extent of the jump was probably driven by over-leveraged shorts,” said Vijay Ayyar, head of Asia Pacific at crypto exchange Luno in Singapore.

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Harry Byrne

Harry Byrne

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