Caught in the Hope & FUD cycle
Bitcoin has been on a run of 7 green days in a row (including today, so far!), and if you paid attention to the media, you would think it’s because of the rumour that Amazon will be accepting Bitcoin…soon.
Bitcoin had already bounced off a low of $29,200 and made ~15% gains before a minor pullback. Many technical analysts were already calling for a strong bounce and we got one.
At 3.39pm GMT - I was the first to post on twitter the CityAm story citing an “insider” and the price moved ~1% over the next 7 hours. Hardly an earth-shattering pump.
Then in the space of 3 hours Bitcoin went parabolic - adding another 16% and breaking $40K hours later for the first time in 2 months.
Suddenly everybody was posting the story and even the mainstream media got a hold of it.
Why did the price pump so hard? It depends on who you listen to. Perhaps some of it was technical, some of it due to shorts being squeezed, some of it because of the Amazon hype - but Bitcoin was due for a bounce and it bounced. It’s still range-bound and doesn’t mean too much (in my opinion) until it breaks through $42K.
Bitcoin Twitter is highly susceptible to fake stories and a few people are shitposting for some amusement - that’s what happens when the price isn’t really doing much and the news has dried up.
@CryptoCobain owned up to this after the story spread, but take a look at this OBVIOUS troll from our mate @AltcoinGordon “- SAUCES!”
Even with this obvious and hyperbolic troll, the rumour took off and made it into the media. While there was never any substance to Apple buying Bitcoin, the Amazon story is not without any basis. Amazon has been building out a Digital and Emerging Payments (DEP) division and soon to be launching a pilot in Mexico as reported by CoinDesk in February
…and posted a job last week for Digital Currency and Blockchain Product Lead seeking “domain expertise in Blockchain, Distributed Ledger, Central Bank Digital Currencies and Cryptocurrency”
So they are working on something…and so is Apple. When one of them finally makes a move, it will compel the others to get into Bitcoin. Apple, Google, Amazon, Facebook, Twitter…it’s inevitable.
This is probably a good time to post a reminder of how FUD and HYPE are generated by interested parties wanting to manipulate markets. @TwoCommaPauper made a post with great detail and even prices for planting stories in well known publications. I urge you to take a read through the whole thread.
Thank you for reading :)
Pls share it with your friends.