Bitcoin Suddenly Gives Up Its Price Gains After Amazon Shock, Sending Ethereum, BNB, Cardano, XRP And Dogecoin Sharply Lower

Bitcoin Suddenly Gives Up Its Price Gains After Amazon Shock, Sending Ethereum, BNB, Cardano, XRP And Dogecoin Sharply Lower

Bitcoin and cryptocurrency prices have moved sharply lower after charging into the week yesterday.

The bitcoin price, which briefly touched $40,000 per bitcoin yesterday, has dropped more than 7%, falling back to $36,000 after Amazon denied reports it was poised to add bitcoin and cryptocurrency support.

The sudden sell-off knocked the wider cryptocurrency market, with ethereum, Binance's BNB, cardano, XRP and the meme-based dogecoin recording losses of between 5% and 10%.

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Bitcoin's rally over the last few days was fueled by wild speculation Amazon was about to add broad support for bitcoin and a handful of other major cryptocurrencies. However, after an intense media frenzy, Amazon nixed the rumor while keeping the door open for future bitcoin and crypto adoption.

"Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true," said an Amazon spokesperson, first reported by Bloomberg. "We remain focused on exploring what this could look like for customers shopping on Amazon."

Reports over the weekend that Amazon will "definitely" be adding the option to pay with bitcoin this year, citing an unnamed source, followed the company posting a job ad for a "digital currency and blockchain product lead," topping off a week that included Tesla billionaire Elon Musk reconfirming his commitment to bitcoin and Twitter's Jack Dorsey telling investors bitcoin is a "big part" of the social network's future.

Bitcoin and cryptocurrency prices have seen a violent return to extreme volatility over the last week after a brief period of serenity.

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The combined crypto market has swung through a range of more than $300 billion over the last week, with Elon Musk's pet project dogecoin ricocheting double-digit percentages and giving weary traders whiplash.

"I don’t give out investment advice as it’s anyone’s guess where the market will go in the short term, but I’m always bullish in the long-term about the value of bitcoin as a store of value and its potential to change the world for the better," Changpeng "CZ" Zhao, the chief executive of bitcoin and crypto exhange Binance, said via email.

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