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Bitcoin Little-Changed at $25.7K After Newsy and Volatile Session

Bitcoin flat after volatile session (CoinDesk)

Approaching six-month lows earlier in the session, the price of bitcoin quickly jumped about 2% Friday afternoon to above $25,900 after the FASB approved what's seen as being a favorable accounting treatment for companies holding crypto on their balance sheets and ARK Invest submitted paperwork for a spot ether ETF.

The rally, however, quickly faded, with bitcoin giving up any session gains and returning to just below $25,700, roughly its level of 24 hours ago. Ether followed the same price action and is also flat at $1,630.

The broader CoinDesk Market Index (CMI) is underperforming a bit, lower by 0.3% over the past day.

The economic news remains bearish

Crypto was under pressure Friday morning after the ISM Services Index for August came in at a stronger than expected 54.5. That was up from 52.7 previously and ahead of economist forecasts for 52.5.

The news was further confirmation that the U.S. economy continues to expand, obviating the need for the Federal Reserve to consider easing monetary policy. It sent interest rates higher and the price of bitcoin down below $25,400.

Accounting rules provide a bullish boost

The Financial Accounting Standards Board (FASB) later Friday essentially approved a rule dictating that public and private companies with crypto on their balance sheets use fair-value accounting when reporting holdings.

Companies currently have to mark crypto holdings at the lowest value they hit during a quarter – considered, by some, MicroStrategy's Michale Saylor included, an impediment to corporate adoption.

Exchange-traded fund frenzy continues

While the ETF focus has been very much on the flurry of applications to launch a spot bitcoin fund, ether took center stage today with Cathie Wood's ARK Invest and 21Shares teaming to file paperwork to bring to market what would be the first spot ether ETF in the U.S.

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