Bitcoin Jumps Over $26.2K; Tweak In Accounting Norm Buoy Investors
By Laxmikant Khanvilkar
The leading virtual digital assets or VDAs prices have shed the gloom observed over the past couple of weeks and were trending higher during Friday’s Asia session after the change in accounting norm governing cryptocurrencies buoyed investor sentiment.
On Wednesday, the Financial Accounting Standards Board (FASB) allowed U.S. companies to use fair-value principle, letting them to show gains and losses immediately on their income statements. The decision could make businesses more willing to buy cryptocurrencies, analysts said.
The optimism helped Bitcoin (BTC), extend its two-day rally past $26,000 mark. It was recently changing hands at $26.360.52, up 2.43%. Ethereum (ETH) followed the suite. The second largest crypto in market value, was quoting 1.28% higher in the last 24-hours to $1,652.38.
Prior to FASB tweaking accounting norm, companies were required to mark crypto holdings at the lowest value they hit during a quarter.
MicroStrategy (MSTR) Executive Chairman Michael Saylor believes the rule update “eliminates a major impediment to corporate adoption of bitcoin as a treasury asset.
The global crypto market cap rose 1.14% to $1.05 tn, over the last 24-hours. Conversely, the total crypto market volume eased 9.69% to $24.28 bn. The total volume in DeFi is currently $2.21 bn and all stablecoins $22.72 bn, representing 9.11% and 93.56% respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance increased 0.34% to 48.54%.
IC15 index, the barometer of top fifteen tokens, advanced 0.52% to 33,967.24.
Meanwhile, FASB is expected to formally approve final language later this year and companies at that point would be free to adopt the new standards. Companies will be required to switch over beginning with calendar year 2025.
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