Bitcoin hits six-week high as Amazon considers accepting the cryptocurrency

Bitcoin hit a six-week high yesterday after hints Amazon might one day accept payments in the cryptocurrency.

Bitcoin was trading at more than $39,000 (£28,290) per coin yesterday, and is now $38,646.

The cryptocurrency’s performance bucks the trend for all the major financial indices, which all fell today.

Britain’s FTSE 100 has fallen 0.4{8a924211cc822977802140fcd9ee67aa8e3c0868cac8d22acbf0be98ed6534bd} due to poor performance from banking stocks. Germany’s Dax has lost 0.5{8a924211cc822977802140fcd9ee67aa8e3c0868cac8d22acbf0be98ed6534bd} and the Cac 40 in France fell 0.3{8a924211cc822977802140fcd9ee67aa8e3c0868cac8d22acbf0be98ed6534bd}.

The Bitcoin spike comes as Amazon put out a job advert for a digital currency and blockchain product lead.

Bitcoin is the world’s largest cryptocurrency and was set up in 2009

Amazon said it wanted to hire someone who can “innovate within the payments and financial systems” of its website.

It wants suitable candidates to have experience in blockchain, cryptocurrencies, central bank digital currencies and more.

The new hire would draw up a cryptocurrency strategy for Amazon.

If the new hire leads to Amazon accepting Bitcoin that would be a major boost to the struggling cryptocurrency.

Earlier this month the prices of cryptocurrencies Bitcoin, Dogecoin and Ethereum all slumped as financial watchdogs got tough on the digital coins.

The value of Bitcoin, the biggest cryptocurrency, fell to around $33,525.

The price of second-largest cryptocurrency Ethereum fell 4.5{8a924211cc822977802140fcd9ee67aa8e3c0868cac8d22acbf0be98ed6534bd} to $2,212, while its high-profile rival Dogecoin fell by 6.5{8a924211cc822977802140fcd9ee67aa8e3c0868cac8d22acbf0be98ed6534bd} to $0.23.

Bitcoin prices are falling for two main reasons.

Firstly, regulators around the world are getting tough on the digital currencies.

Last month China launched a major attack on cryptocurrencies, with vice-premier Liu Hu saying the country would “crack down on bitcoin mining and trading”.

The country’s central bank put out a statement saying no Chinese financial companies should have anything to do with cryptocurrencies.

This is a big blow to Bitcoin, as around 75{8a924211cc822977802140fcd9ee67aa8e3c0868cac8d22acbf0be98ed6534bd} of its coins are mined in China.

Bitcoin mining is the process by which new bitcoin are created and entered into circulation. It is done by computers solving complicated puzzles, and takes huge amounts of power.

Also last month the UK’s Financial Conduct Authority (FCA) watchdog banned the world’s biggest cryptocurrency exchange Binance .

Bitcoin is also still suffering from electric car maker Tesla abandoning decisions to take payment in the currency.

In February Tesla said it would accept Bitcoin. The company’s shares hit a record high of $64,000 in April, before Tesla did a U-turn in May for environmental reasons.

Since then Bitcoin prices have ranged from around $30,000 to $40,000.

Cryptocurrency prices have become linked to statements made by Tesla chief executive Elon Musk, who is a fan of the digital coins.

What happens to the price of Bitcoin tends to be repeated with other, smaller cryptocurrencies.

Its popularity spawned many imitators, and there are now more than 4,000 digital coin alternatives.

What are the risks of investing in cryptocurrencies?

But cryptocurrency is not regulated in the UK, unlike most other financial products.

The Financial Conduct Authority (FCA) watchdog does monitor crypto, but only to prevent money laundering or funding terrorism.

That means if you put money into anything to do with crypto and lose it you will probably never see it again.

Many other financial deals are regulated by the FCA, meaning your money is protected up to £85,000 if the company goes bust or your money is stolen somehow.

This is thanks to the Financial Services Compensation Scheme (FSCS), a fund financial firms pay in to.

You can check on the FCA or FSCS websites to see if a company you are interested in is regulated and safe to deal with.

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