Bitcoin fell below $37,000 after briefly surpassing $40,000 following Amazon.com's denial that its job posting for a digital currency executive meant that it will accept the token for payments this year. It later recovered to over $38,000.

Earlier Monday, the job posting from the retail giant seeking an executive to develop the company's “digital currency and blockchain strategy” had stirred questions among analysts over whether the move could eventually lead to Amazon.accepting Bitcoin as a method of payment. Shortly before 4.00 pm in New York, an Amazon.spokesperson's denial that the company will accept the token for payments this year caused its price to plunge to $37,598. Rival coins including Ether and Litecoin also tumbled.

Investors rushing to cover bearish bets had fueled the earlier rally that drove the coin at one point up more than 17 per cent on Monday to $40,545, its highest since June 15. More than $950 million of crypto shorts were liquidated on Monday, the most since May 19, according to data from Bybt.com.