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Here's Why Bitcoin, Ethereum, and Dogecoin Soared Today

What happened

The cryptocurrency market received a major boost on Monday from a report that Amazon (NASDAQ: AMZN) was preparing to accept Bitcoin (CRYPTO: BTC) and other cryptoassets as forms of payment in the coming months.

The news helped to drive Bitcoin's price up 9% as of 4:55 p.m. EDT on Monday. Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE) also rallied, to the tune of 5% and 7%, respectively.

So what

Amazon recently listed a job posting for a "Digital Currency and Blockchain Product Lead." The person who fills the role will be tasked with heading up the e-commerce giant's blockchain strategy and product roadmap.

Excitement regarding Amazon's digital currency initiatives reached a fevered pitch on Monday following a report from City A.M. The British financial newspaper said Amazon was "definitely" gearing up to accept Bitcoin payments by the end of the year and planning to launch its own cryptocurrency by 2022.

A colorful digital circle is surrounding a Bitcoin symbol on a black background.

Amazon's interest in Bitcoin is growing. Image source: Getty Images.

Amazon, however, denied City A.M.'s claims: "Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true," an Amazon spokesperson told Bloomberg.

Still, Amazon did confirm its interest in learning more about digital currencies and how it could potentially integrate them into its massive e-commerce platform. "We remain focused on exploring what this could look like for customers shopping on Amazon," the company said.

Now what

If Amazon were to accept Bitcoin and other cryptocurrencies as payment, it would be a game-changer for the crypto industry. The move would instantly boost the credibility and usability of Bitcoin. The cryptoasset's price, in turn, would likely skyrocket.

Yet even if this does occur, it will likely be some time away. In the meantime, plenty of risks remain. For example, crypto investors should brace for a potential crackdown on stablecoin issuer Tether, which has drawn interest from regulators in recent weeks after investors questioned the lack of transparency in its reserve disclosures.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Joe Tenebruso owns shares of Amazon and has the following options: long January 2023 $2,400 calls on Amazon. The Motley Fool owns shares of and recommends Amazon and Bitcoin. The Motley Fool recommends Ethereum and recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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