HomeNewsBitcoin's Wild Ride: From Lows to Highs and Back, What's Next?

Bitcoin’s Wild Ride: From Lows to Highs and Back, What’s Next?

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  • Bitcoin experiences a volatile session, rising approximately 2% following favorable crypto accounting rules and an ether ETF announcement but soon returning to near-starting levels.
  • U.S. economic strength, reflected by the ISM Services Index, implies reduced chances of monetary easing by the Federal Reserve, exerting pressure on Bitcoin’s price.

Bitcoin’s Turbulent Ride: Navigating Economic Waves and Accounting Shifts

On what seemed like an ordinary Friday, Bitcoin started nearing its six-month low. However, the crypto realm soon witnessed a spike as Bitcoin shot up about 2% to breach the $25,900 mark. This sudden jolt in optimism was spurred by the Financial Accounting Standards Board (FASB) greenlighting a crypto-friendly accounting approach and ARK Invest introducing paperwork for an inaugural spot ether ETF in the U.S.

Yet, this climb was ephemeral. Bitcoin relinquished its momentary gains, settling just shy of $25,700—mirroring its position from a day prior. Ether, the silver to Bitcoin’s gold in the cryptocurrency domain, mirrored this trajectory, maintaining stability at $1,630.

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While individual cryptos were finding their footing, the CoinDesk Market Index (CMI) depicted a slightly gloomier image, dipping by 0.3% over the day.

Economic Indicators Steer Crypto’s Course

Cryptos, including Bitcoin, faced a downward push on Friday morning. This bearish momentum was a direct consequence of the ISM Services Index for August registering a robust 54.5, a marked climb from its earlier 52.7, and surpassing the economist projection of 52.5. For those navigating the intricate avenues of crypto, this was a clear sign: The U.S. economy is on an upward trajectory. Such economic vigor diminishes the likelihood of the Federal Reserve opting for a relaxed monetary policy, which in turn propelled interest rates upwards and nudged Bitcoin‘s price to sub-$25,400 levels.

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A Glimmer of Hope: New Accounting Rules

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Offering some respite to the crypto world, the FASB later unveiled a rule that could be a game-changer. The board directed both public and private entities to adopt fair-value accounting for their crypto assets. This was a significant departure from the existing practice where companies would record their crypto at its lowest quarterly value—a practice that stalwarts like MicroStrategy’s Michael Saylor perceived as a barrier to mainstream corporate embracement.

Spotlight on Ether ETF

While Bitcoin ETFs have been at the forefront of discussions, the day saw Ether steal some of this limelight. The formidable duo of ARK Invest and 21Shares collaborated to initiate the groundwork for what could be the maiden spot ether ETF in American shores.

Nevertheless, despite these encouraging developments, both Bitcoin and Ether’s surge was short-lived, with their prices remaining largely unchanged as the day wrapped up.


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