A Bitcoin squeeze has seen the crypto asset jump over 13% to $40,000, caused by factors such as Amazon’s interest and support from big names.
Bitcoin recorded a significant squeeze over five days from $30,000 on July 21st to about $35,000 on July 25th. This is keeping with a trend that has seen a significant and steady rise in the past six weeks. However, the largest single daily gain over the period was when Bitcoin surged more than 13% in the early hours of July 26th. The crypto squeezed past the $35,000 support and stopped just shy of the $40,000 resistance, in a matter of hours. It briefly traded just above $39,000 in the early hours of July 26th, but has since cooled off a little. At the time of this writing, Bitcoin is trading at $38,700.
Amazon.com Inc (NASDAQ: AMZN) may be the main factor responsible for this rise. Recently, an insider confirmed to London media outlet, City A.M., that Amazon would begin accepting Bitcoin payments by the end of this year.
The retail giant also intends to develop its own cryptocurrency by 2022. According to Business Insider, an Amazon job listing is seeking a leader to build their digital currency and blockchain strategy. This qualified person will be tasked with drawing up a blueprint that will successfully ease Amazon into the crypto sphere. This is a huge turnaround from 2014 when Amazon was still skeptical about crypto.
Another reason attributed to Bitcoin’s rise, is the general optimism amongst influential individuals in the tech and finance sector. This is according to Caroline Bowler, CEO of Australian crypto exchange BTC markets. She opines that Elon Musk, Jack Dorsey, and Cathie Wood were all upbeat about Bitcoin’s future at the Bitcoin Conference. All three tech magnates foresee cryptocurrencies as part and parcel of their respective organizations in the near future.
How Other Digital Currencies Fared amid Latest Bitcoin Squeeze
Bitcoin was evidently the top gainer, but it wasn’t the only crypto impacted by a surge in prices. Ethereum (ETH) was the weakest-performing of the top ten digital currencies by market capitalization. However, the second-largest crypto posted a gain of just under 7% in the last 24 hours. Polkadot (DOT) and Chainlink (LINK) each posted 24-hour increases of more than 11%, enough to rank among the top gainers for the day.
Dogecoin was up less than 9% for the day, despite Elon Musk’s July 25th tweet stating that “Dogecoin is money”. The digital currency is still on pace with the vast majority of the alt-coin market. However, it would appear that the CEO of Tesla’s Twitter backing of the meme-coin is beginning to wane.
The recent surge by all digital currencies across the board is one to watch closely in the coming weeks. As expected, the bulls will continue to hope that prices keep riding high. This is especially true as more updates released from the worlds of finance and tech continue to show positive analysis.