- Reportedly Amazon may start accepting cryptocurrency payments by the end of 2021
- Bitcoin rose sharply and tested 40k resistance
- ETH reserves are dropping faster than Bitcoin
The last week started on a negative note and major cryptocurrencies tested June lows. However buyers managed to halt declines and for the rest of the week an upward movement could be observed. Market sentiment improved significantly during today's session after rumors of Amazon setting up payments in BTC, and other cryptocurrencies spread. Bitcoin's dominance increased to 47.0%. The capitalization of all digital assets in circulation rose to 1.52 trillion, while an average daily trading volume is registered at $102.00 billion.
Bitcoin market dominance moves slightly higher. Source: Coinmarketcap.com
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Bitcoin price surged 15% today after an unconfirmed single-source told City A.M. that retail giant Amazon is looking to accept bitcoin payments by year’s end and is looking at minting its own token by 2022. According to the source, Bitcoin would be the first cryptocurrency accepted. Still, the corporation is determined to add other popular digital currencies in the future, including Ethereum, Cardano and Bitcoin Cash. The e-commerce giant is also looking for a Digital Currency and Blockchain Product Lead, CoinDesk previously reported. In a statement, the company described the position as a means for Amazon to "explore" what's happening in the crypto space.
A spokesperson told The Block:
“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, and hope to bring that future to Amazon customers as soon as possible.”
However, some market participants are of the opinion that today's upward impulse should be treated as a short squeeze, which raises a question mark as to the sustainability of this bullish move.
According to the Crypto Fear & Greed Index, the shift towards $40,000 has not changed the overall market mood based on “fear.” On Monday, the Index reached 26/100 — signaling fear, rather than greed or a “neutral” atmosphere. Source: Alternative.me
Ethereum reserves continue dropping ahead of the London Hardfork
Ethereum blockchain will undergo backward-incompatible upgrade on 4th August, also called London hard fork. According to the recent trend of exchange reserves, ETH reserves are dropping faster than Bitcoin. This signals possible bullish sentiment of traders ahead of the implementation of the Ethereum London Hardfork.
The amount of Ethereum held in all exchanges' wallets indicates the ETH supply available for selling, purchasing, and margin trading is declining. Source: CryptoQuant
Ethereum - last week price broke above the 50 SMA (green line) and 200 SMA (red line) last week. Today the price broke above major resistance at $2310.00 and is heading towards a downward trendline. Should a break higher occur, an upward move may accelerate towards the next resistance at $3022. Source: xStation5
