Cryptocurrencies rallied Monday, just a week after they were hit by a major sell-off.
As of 4:45 a.m. ET on Monday, bitcoin, ethereum and dogecoin had soared 10%, 7.3% and 11%, respectively, over the past 24 hours, according to data from CoinDesk. Bitcoin climbed to a six-week high of nearly $38,133, while ethereum reached $2,330. Dogecoin was last trading at about 20 cents per coin, giving it a $28.8 billion market cap. The surge came as major tech giants have signaled — or appeared to signal — their support for digital currencies through last week.
For one, speculation that “Amazon may be preparing to accept digital coins as payment” may have played a role in the rally, according to Jeffrey Halley, a senior market analyst for Asia Pacific at Oanda. The conjecture was prompted by a job posting on Amazon’s website for a “digital currency and blockchain product lead.” According to the job description — which was widely reported in various media outlets late last week — the executive would be expected to help Amazon’s payments team develop “new capabilities.” The company did not immediately respond to a request for comment.
Virtual currencies have soared over the past week after bullish comments from Tesla (TSLA) and Twitter (TWTR) chief executives Elon Musk and Jack Dorsey, who have each shared how they have incorporated or plan to incorporate them in their businesses. That came in contrast to a crypto downturn early last week, as investors were rattled about the Delta variant of the coronavirus. Bitcoin at the time fell below $30,000. But then “Elon rode to the rescue,” according to Craig Erlam, a senior market analyst at Oanda. On Wednesday, Musk said at an event with Dorsey that Tesla and SpaceX both own bitcoin (XBT). Musk has previously disclosed that Tesla had bought bitcoin, while SpaceX has claimed that it would accept dogecoin. The CEO also revealed last week that the only major personal investments he had outside of his companies, Tesla and SpaceX, were in bitcoin, ethereum and dogecoin.