What happened to bitcoin last week and how it affected the crypto pump and dump groups

Bitcoin price has risen suddenly! So why did this happen?

Bitcoin hit $ 40,000 in minutes and is retreating. Why is Bitcoin (BTC) rising so fast at its current price of $ 37,900? The sudden advance that started at 02:00 was halted as the price rose to $ 40,000 by 04:00. Here are the reasons for the rise and changes in crypto pump and dump groups formed by the SafeTrading team!

If you remember, the Amazon rumor hit social media in the evening. This rumor peaked around the time China kicked off the day and spread very quickly among Chinese investors. A significant portion of the Chinese investors who started the day bought bitcoin (BTC) due to news about Amazon, which is said to have been confirmed by insiders.

This rise allowed the $ 640 million short position to become liquid within 1 hour. In other words, the $ 640 million that entered the low position was completely dumped by the latest sudden advance.

 

Why is bitcoin growing?

Let’s move on to the details of the Amazon rumors. The British newspaper said that before the end of the year, Amazon will begin accepting payments in bitcoins (BTC). It is also reported that Amazon will launch its own cryptocurrency next year and expand its solutions for cryptocurrency payments.

While this information, confirmed by many Amazon employees, has not yet been confirmed by official sources, it looks like someone is confident about its accuracy. If an official announcement comes in, Bitcoin (BTC) could quickly surpass 45,000 levels – SafeTrading analyst says.

Has Amazon bought bitcoins?

The British newspaper, relying on its internal sources, did not say that. However, he broke the good news that by the end of the year they will start accepting Bitcoin payments. If the Bitcoin (BTC) payment is to be accepted, of course, a certain amount of Bitcoin (BTC) assets will be purchased so as not to be too dependent on exchange rate fluctuations.

There are the reasons:

  • Amazon, the fourth largest company in the world, was founded in 1994 by Jeff Bezos. 
  • Andy Yassi became the new CEO of the company about 21 days ago. 
  • Amazon, with about 1 million employees, is one of the five largest companies in the world. 
  • Until 2 years ago, they had an annual income of $ 280 billion. 

In other words, when they start accepting Bitcoin (BTC) payments, billions of dollars of hot money could suddenly enter the market. Amazon, serving all over the world, could start a new trend of widespread use of cryptocurrencies and changes in crypto pump and dump groups.

Bitcoin has returned to growth.

With the opening of Asian markets on the first working day of the week, Bitcoin climbed to the $ 40K band. At the time of writing, the pair is trading above $ 38k. Its total market capitalization reached $ 1.550 trillion. In 6 days, the total market capitalization has grown by more than $ 350 billion.

The downtrend on the 50-period moving average has ended and is turning into a positive slope.

If prices hold above the 50-period moving average, the opposite of the June 19 death cross will be a gold cross. We can announce that the season of bears is over.

Ethereum and altcoins are also following the rise in value of the leading cryptocurrency. At the time of writing, Ethereum is trading above $ 2,350. In the table below, we see cryptocurrencies that have risen in price over the day.

The most expensive cryptocurrency in the Top 100 was Amp with 35%. Amp is followed by: 

  • Zilliqa (ZIL); 
  • BitTorrent (BTT); 
  • VeChain (VET); 
  • Sushi (SUSHI);
  • Holo (HOT).

The total amount of deposits in DeFi institutions (decentralized financing) reached $ 65 billion.

After today’s spike in prices, the Fear and Greed Index, Bitcoin has moved out of the Extreme Fear zone. The value of the index, which rose to 26, declined on June 21 to 10.

Here are 3 reasons why Bitcoin rose to $ 40,000!

After Bitcoin hit an all-time high of $ 64,800, everyone thought the growth would continue in the same way. However, negative news that came one after another to the market in those days brought down Bitcoin.

First, Elon Musk has suspended the use of bitcoins in Tesla sales. Then China increased the pressure on Bitcoin. Bitcoin fell below $ 30,000 in this negative sentiment.

After a long break, the bulls took control of the market. Bitcoin, the largest cryptocurrency by market cap, made a massive return to the Bitstamp exchange at 01:02 UTC at $ 39,850, its highest level since June 16. At the time of writing, it is trading at $ 38,860.

Having been in the red for three months in a row, the flagship cryptocurrency could finally break that bearish line if it manages to maintain its recent gains – SafeTrading analyst.

Cryptocurrency analyst Alex Kruger stated that Bitcoin is undergoing a “perfect short squeeze.” Short squeezes usually occur when the price of a particular asset rises rapidly due to a large number of bets. Traders have no choice but to buy back to close their short positions, which pushes the price even higher. According to data provided by Bybt, about $ 929 million in short positions have been liquidated in the cryptocurrency market in the last 24 hours.

Rumor about Amazon.

The main bullish catalyst for the final move appears to have been rumors about Amazon. Earlier yesterday, insider information sparked the cryptocurrency markets. Rumors that the world’s largest e-commerce giant might accept Bitcoin by the end of the year quickly spread. A blockchain vacancy announcement last week fueled rumors.

Tesla does not sell bitcoins.

Elon Musk, who participated in the fall of the markets, spoke very clearly for the first time in a long time. Jack Dorsey plays a big part in this. Dorsey, who brought Elon to TheBword, made Elon Musk talk about Bitcoin. Elon announced that Tesla does not sell bitcoins. He also stated that SpaceX also owns bitcoins as crypto pump and dump groups are changed.

Musk stated that he also invests in bitcoins, Ethereum, and Dogecoin. After these announcements, the market began to move slightly upward. There are a lot of those who claim that optimism in the market will continue. The cryptocurrency market is signaling that it may return to its former glory.

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