Bitcoin soared Monday to nearly $40,000, a rally some attribute to traders exiting their bets on the dips, as well as persistent speculation about the potential entry of e-commerce giant Amazon into the cryptocurrency sector.
The largest cryptocurrency rose 15% to $39,681 before paring some gains to trade at around $38,100 this morning in Hong Kong. Other cryptocurrencies also rose, including Ethereum which ranks second.
Last week, Amazon announced a vacancy for a crypto product team leader, sparking speculation that it might accept cryptocurrency in transactions.
The rally is also based on other recent forms of support for Bitcoin, including Positive comments From Tesla CEO Elon Musk and Kathy Wood of Ark Investment Management LLC, which led the cryptocurrency price over the weekend to surpass its 50-day moving average, a trend some see as positive.
Bitcoin is still around $27,000 below its mid-April high of nearly $65,000, as the cryptocurrency has taken a hit from criticism for the power consumed by the computer servers it supports, regulatory crackdown in China and tougher official scrutiny in Europe and the United States.
The CEO of Tesla – which already owns Bitcoin – revealed at a conference on Bitcoin last week that his space exploration company SpaceX also owns the cryptocurrency.
He added that he would like to see the cryptocurrency succeed, and that he personally bought Bitcoin, Ether and Dogecoin.
Cathy Wood said companies should consider adding Bitcoin to their balance sheets.