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Bitcoin Tumbles After Amazon Denies It Will Accept Crypto This Year

Tyler Durden's Photo
by Tyler Durden
Monday, Jul 26, 2021 - 04:08 PM

Update (1600ET): An Amazon spokesperson told Bloomberg in an emailed statement that the City A.M. report, citing an insider, claiming it will accept bitcoin in 2022 (and is investigating issuing its own coin) are false.

  • *AMAZON DENIES CITY A.M. REPORT IT WILL ACCEPT BITCOIN THIS YEAR
  • *AMAZON ALSO DENIED IT PLANS TO LAUNCH A CRYPTO COIN IN 2022
  • *AMAZON SAID IT WILL CONTINUE EXPLORING CRYPTOCURRENCIES

The reaction was swift but did not erase all the gains of the weekend...

*  *  *

After crypto's dramatic surge higher overnight, the narratives have been flowing.

From technical breakouts (BTC above its 50DMA) to fundamental (Amazon insider says "ready to roll" on accepting crypto payments), but Occam's Razor still rules. Simply put, it was a massive short liquidation.

More than $950 million of crypto shorts were liquidated on Monday, the most since May 19, according to data from Bybt.com.

Source: 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, while adding the rumors over Amazon likely had a role to play too.

For now, Bitcoin is holding on the majority of the short-squeeze gains...

Source: Bloomberg

Cue the FUD.

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