Sentiment in the world’s preeminent cryptocurrency has turned bullish today following a recent sell-off. According to CoinDesk data, Bitcoin has increased by nearly 12 percent in the last 24 hours. According to coinmarketcap.com, the entire cryptocurrency market has grown by more than $100 billion in value in 24 hours.
Bitcoin’s rally lifted its main rival Ethereum by 8.7 percent to $2,345.
The news comes after Twitter CEO Jack Dorsey, Tesla CEO Elon Musk, and ARK Invest CEO Cathie Wood held an influential bitcoin conference called “The B-Word” last week.
During the conference, Mr Musk said that Tesla would most likely reengage transactions with bitcoin for their vehicles.
This is because bitcoin mining has been shown to utilise over 50 percent of electrical energy from renewable sources.
Another boost to buyer sentiment for bitcoin is the news that Amazon is currently “exploring” ways of accepting payments in cryptocurrency.
Jeff Bezos’ company is now seeking to hire a cryptocurrency expert for this very purpose.
A spokesperson for Mr Bezos’ company, which has a market capitalisation of $1.6trillion, said: “We’re inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon.
“We believe the future will be built on new technologies that enable modern, fast, and inexpensive payments.
“We hope to bring that future to Amazon customers as soon as possible.”
Speaking to CNBC Alex Brammer of Luxor Mining, a cryptocurrency pool built for advanced miners spoke about the boost in bitcoin’s value from investors in the Asia.
Mr Brammer said: “The Chinese trading day has opened up, and the Elon/Jack/Cathie talk was super bullish.”
According to bitcoin mining engineer Brandon Arvanaghi, today’s bullish cryptocurrency moves have also been associated with the so-called “short squeeze”.
Day traders in cryptomarkets who short bitcoin are betting that the price will fall further.
But because the bitcoin price reversed its trend and began to increase in value, the short traders quickly exited their positions which helped to make the price jump even higher.
This led Mr Arvanaghi to contemplate that the “extent of the jump was probably driven by over-leverage shorts”.
More to follow…