AMZN News: Amazon denies report it plans to accept Bitcoin payments by the end of the year

Amazon sends Bitcoin price soaring in value.
Bitcoin pops to $40,000, up nearly 10%.
AMZN reports earnings on Thursday, July 29.

Ivan Brian FXStreet

Update July 27: Amazon denied a widely circulated report on Monday that it was planning to accept payments in Bitcoin. The report was cited as the reason for Bitcoins' wild rise on Monday but Amazon said the speculation is not true in a statement late on Monday.

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

Amazon sent the price of Bitcoin soaring on Monday as reports hit the wires that it plans to start accepting Bitcoin for payment by the end of the year. City AM reported that Amazon is looking to start accepting payments in Bitcoin by the end of the year and is also looking to launch its own token in 2022. The City AM report cited an inside source. The report also cited a job advertisement over the weekend for a cryptocurrency executive for Amazon. See more on the Bitcoin reaction here.

Bitcoin bulls were delighted with the news and immediately sent the price of the cryptocurrency leader soaring. Bitcoin is currently trading at $38,300, up over 8%. Bitcoin had topped out at $39,850, just failing with the psychological $40k resistance. Bitcoin has struggled recently as it stabilized around $30,000 after suffering heavy falls in May when it practically halved in value. Now having a company the size of Amazon reportedly on its side should help bulls to feel more confident in their arguments. This is no Tesla accepting payment in Bitcoin for car sales. This is Amazon, the biggest online and global retailer the world has likely ever known. Amazon releases results this Thursday, July 29, so it will be interesting to see if any mention is made of these plans in the release or in the conference call afterward.

Amazon stock forecast

AMZN is poised just beneath all-time highs but is unlikely to see too much action before results on Thursday. Investors will shy away from any new positions until those results give some more clarity. We can see from the chart below that the previous two results, despite being impressive, have not been kind to the share price with AMZN falling afterward. A case of better to travel than arrive and buy the rumour sell the fact. Amazon is expected to release earnings per share (EPS) of $12.22 and revenue of $115 billion for the quarter.

Any pullback should stall and find support at $3,260 to $3,200 as this area clearly has a large amount of volume on the profile chart. Also here is the point of control (price with the highest concentration of volume) at $3,190. If you want to add support to the argument, the 200-day moving average is at $3,260. So if Amazon results follow the pattern of the previous two releases and we get a pullback, this is the support level to get long.

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.