Amazon Denies Allowing Cryptocurrency Payments... Bitcoin Plummets 8.6% (Summary)

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Amazon has officially denied some media reports that it is considering allowing Bitcoin as a payment method. Following this, the price of Bitcoin, which had reached $40,000 for the first time in a month, plunged again to the $37,000 range.

On the 26th (local time), according to major foreign media, an Amazon spokesperson stated, "The speculation surrounding our specific plans regarding virtual currency is not true."

Amazon also added, "We will continue to focus on analyzing the shopping experience that consumers want."

This response came after the London-based economic media City A.M. reported on the 25th, citing anonymous sources, that Amazon is exploring ways to accept Bitcoin as a payment method by the end of the year.

This report drew attention as it coincided with Amazon posting a job opening for digital currency and blockchain experts on the 22nd.

Additionally, last week, Tesla CEO Elon Musk announced plans to resume allowing Bitcoin payments, which drove the upward trend of Bitcoin.

In fact, the price of Bitcoin briefly surpassed $40,000 on this day for the first time since June.

However, after Amazon officially denied plans to allow Bitcoin payments, the price of Bitcoin fell again.

According to CoinDesk, as of 11:40 AM KST on the 27th, Bitcoin was trading at $36,898, marking an 8.6% drop within seven hours after hitting $40,000 at 4:30 AM.

Meanwhile, the U.S. Department of Justice is investigating executives of the virtual currency company Tether for allegedly hiding from banks for years the fact that Tether is involved in virtual currency trading, Bloomberg News reported on the same day, citing anonymous sources.

Tether is also the name of the stablecoin issued by the company, a virtual currency pegged to traditional currencies to reduce price volatility. This coin is said to account for more than 60% of the total stablecoin issuance, estimated at $100 billion.