By Yasin Ebrahim
Investing.com – Bitcoin topped $40,000 Monday for the first time in more than month amid signs Amazon (NASDAQ: AMZN ) is shaping up for a move into the crypto industry, but the dearth of activity on the network that powers the popular cryptocurrency could be signalling caution ahead.
BTC/USD rose 17% to $40,552, rising above the $40,000 level for the first time since June 15.
The impetus for the move higher was widely been attributed to a job posting from Amazon that suggests the e-commerce giant could be warming up to the idea of using blockchain technology and crypto on its platform.
“The payments acceptance & experience team is seeking an experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap,” according to the ad.
The idea of Amazon making a splash in the crypto world was given further credence after City A.M. reported, citing an unnamed source, that the e-commerce behemoth was looking to integrate blockchain technology deep within the plumbing of its platform.
“This isn’t just going through the motions to set up cryptocurrency payment solutions at some point in the future—this is a full-on, well-discussed, integral part of the future mechanism of how Amazon will work,” City A.M. reported, citing the anonymous source.
Others, meanwhile, attributed the rise to a string of positive remarks on bitcoin from Tesla (NASDAQ: TSLA ) CEO Elon Musk, Twitter CEO Jack Dorsey, and Ark CIO Cathie Wood during a recent virtual conference on bitcoin.
Acknowledging that bitcoin is making strides toward lessening its impact on the environment, Musk hinted that Tesla could resume accepting Bitcoin for purchases.
“It looks like Bitcoin is shifting more toward renewables,” Musk said. “I would want to do a little bit more diligence to confirm the percentage of renewable energy usage is at or above 50%.”
As the bulls celebrate the revival of the bitcoin, there are some who suggest that activity on the blockchain, which remains in doldrums, would need to return to support a sustainable rally in the popular crypto.
“Overall, on-chain activity remains somewhat bearish and continues to be quiet,” Glassnode said in its weekly on-chain report. “If on-chain volumes do not rise in support of these elevated prices, it may suggest the rally lacks fundamental drivers and would be a sign for caution.”
“On a 14-day median basis, the entity-adjusted transaction volume for Bitcoin remains depressed at around $5 billion per day. This remains a significant decline from the $16B/day prior to the May Sell-off.”
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.