Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin Tops $40K, but Lack of Blockchain Activity May keep Lid on Gains

CryptocurrencyJul 26, 2021 03:55PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

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.

The news reportedly forced investors who had placed bearish bets on bitcoin to cover their positions, adding further fuel to the rally. More than $950 million of crypto shorts were liquidated on Monday, the most since May 19, according to data from Bybt.com.

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.”

Bitcoin Tops $40K, but Lack of Blockchain Activity May keep Lid on Gains
 

Related Articles

Morgan Stanley launches cryptocurrency research team
Morgan Stanley launches cryptocurrency research team By Cointelegraph - Sep 16, 2021

Morgan Stanley (NYSE:MS), one of the largest banks in the United States, is setting up a new crypto-focused research division. The Wall Street megabank has appointed Sheena Shah...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (7)
Jokers R Us
Jokers R Us Jul 26, 2021 11:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bitcoin rallies while gold sells off, this criminal manipulation has to stop.
Sitender KJ
Sitender KJ Jul 26, 2021 6:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
everyone is spreading fake news, fooling the less knowledge investors.  Thats' why we need regulation in crypto to safegurard retail investors. so much of fake in crypto
Bb Yy
Bb Yy Jul 26, 2021 6:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This has been denied by Amazon. Good job Investing.com, spreading fake news that a nobody outlet obtained from an anonymous source.
Nicky Nick
Nicky Nick Jul 26, 2021 6:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the job post is fake news?
Bb Yy
Bb Yy Jul 26, 2021 6:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nicky Nick No, the quote from an anonymous source is fake news. “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.
James Pattison
James Pattison Jul 26, 2021 6:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Buying more
Hovanet Ladislau
Hovanet Ladislau Jul 26, 2021 5:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
👍Good price
Chibuzor Basil
Chibuzor Basil Jul 26, 2021 5:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello
Mike Baniasadi
Mike Baniasadi Jul 26, 2021 4:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bearish at 3k bearish at 9k bearish at 13 bearish at 19 .... on and on. there are only 3 mil Bitcoin left to mint
Stephen Thoms
StephenT Jul 26, 2021 4:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
why is the transaction volume significant?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email