Over the weekend, Bitcoin showed just how volatile its price can be. The currency crossed the $5,000 mark for the first time in its history, peaking at $5,844 on Sunday. It is currently hovering around $5,600 as of latest.
The reasons behind this sudden rise can be several, although it was likely based on rumors surrounding Amazon and its expected supported for the platform. The support for Bitcoin by Amazon won’t only add enormously to the cryptocurrency’s validity, but also potentially open doors to other online platforms and retailers.
Other reasons include the possible softening of restrictions imposed by China, following its traditionally hostile stance towards the currency. That, combined with the dollar losing its value and Goldman Sachs looking for opening its own trading desk mean the currency saw its largest spike in more than two weeks.
Just earlier last week, the currency lost $600 thanks to rumors of possible banning in Russia. The decline was short-lived however.
No official statement has been released via Amazon as of yet. The currency’s impending fork, which will increase transaction speed and capacity, is expected to further boost its acceptance. We are likely to hear more on the matter and whether it becomes a reality in the company’s next earnings call on October 26th.
Official Retailer Support Coming Soon?
Mainstream online retailers do not use any kind of cryptocurrencies right now. With this you can be sure to see Bitcoin making it to Amazon or other retailers as a possible payment option. Currently, there are workarounds for people who want to pay on Amazon through Bitcoin. However, there are very few platforms still which officially support Bitcoin as a payment system.
Whether the support comes or not, the biggest problem for Bitcoin is the fact that the currency is anything but a safe investment. While it has risen stratospherically from around $1000 earlier this year, fortunes can change within a matter of minutes.