Just like any other assets, cryptocurrencies' prices are also vulnerable to amounts and speculations.
And this time, the price of Bitcoin, the most popular cryptocurrency, soared 12.5% to nearly $40,000. This came when people started speculating that Amazon may plan to start accepting cryptocurrencies for payments.
Bitcoin briefly surged above $39,000, its highest price since mid-June.
Ether and other digital currencies also rose.
The rumors started when Amazon opened a new job opening, in which the company was looking for a “Digital Currency and Blockchain Product Lead”.
“The Payments Acceptance & Experience team is seeking an experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap,” reads the posting.
Then, days later, an unnamed Amazon insider told news outlet City AM that the retail giant is planning to accept Bitcoin payments “by the end of the year.”
The source said Amazon was also considering accepting other cryptocurrencies, and even plans to launch its own token in 2022:
The person added that the directive came directly from Amazon founder and CEO Jeff Bezos himself.
This project is said to have been planned since at least 2019, and that it “is pretty much ready to roll.”
Just when the market started heating up, and the media began to dig deeper for more newsworthy articles, Amazon suddenly denied everything.
The company denied City AM's report that the company plans to accept Bitcoin payments by the end of the year.
However, the company did acknowledge an interest in cryptocurrency.
“Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true,” said a company spokesperson.
“We remain focused on exploring what this could look like for customers shopping on Amazon.”
Following the response, Bitcoin swiftly plunged below $37,000, while other coins also dipped.
Whether or not Amazon is planning to accept Bitcoin, the results are significant, and any of the company's statement regarding cryptocurrencies affected their price.
Amazon is not the first major tech company to do so.
Earlier, Tesla started accepting Bitcoin as payments for its cars in the U.S., but stopped less than two months later, citing environmental concerns associated with the cryptocurrency.
These concerns are likely to be shared by Amazon, which announced a $2 billion climate fund in 2020.