Cryptocurrency Market Update: Bitcoin Surpasses $106,000 as New Accounting Rule Commences

By Omkar Godbole (All times ET unless otherwise stated) Imagine possessing a rare collectible that only reflects its original purchase price, despite appreciating in value over time. This has been the case for U.S. companies valuing their bitcoin holdings. However, as of today, a new rule takes effect, enabling companies to report their bitcoin assets at fair market value rather than the initial purchase price. The FASB fair value accounting rule, passed in 2023, gives firms greater control over asset classification and may accelerate corporate bitcoin adoption. Note that this new standard does not apply to non-fungible tokens (NFTs), wrapped tokens, or internally generated digital assets. According to Alex Kuptsikevich, an analyst at The FXPro, publicly traded companies have begun adopting a strategy similar to MicroStrategy's, adding bitcoin to their balance sheets, as cited in a JPMorgan report. The implementation of the new rule may have contributed to bitcoin's price surge above $106,000 in Asia, further boosted by President-elect Donald Trump's plans to create a strategic bitcoin reserve and a short squeeze on Deribit. The price has since retreated to around $104,500, likely due to concerns that the Fed's anticipated rate cut on Wednesday may come with fewer reductions projected for next year. A CryptoQuant tracker indicates that bitcoin is trading at a discount on Coinbase compared to Binance, signaling weaker demand in the U.S. On a broader scale, Ethereum failed to establish a foothold above $4,000 amidst reports of large staked ether withdrawals from Lido Finance. XRP, focused on payments, traded over 2% lower, undermining a bullish technical pattern. Ripple CTO David Schwartz expressed concerns about FOMO-driven volatility prior to the launch of the company's RLUSD stablecoin, intended for cross-border payments alongside XRP. Schwartz noted that early price fluctuations and high pre-launch bids do not accurately reflect the true market value. In a positive development, Solana's revenue generation has been garnering attention. Ryan Watkins, co-founder of Syncracy Capital, stated, "Solana generated a staggering $431 million in fees over the past 30 days – surpassing all other Layer 1s combined!" Solana now captures 53% of the global layer 1 fee pool, largely driven by the surge in AI activity. However, the token dipped 3%, threatening to break below the 50-day SMA, a key near-term market trend indicator. Chainlink's LINK defied the weakness in major tokens, rising 4% thanks to whale buying. Data from LookOnChain revealed that a whale withdrew 429,999 LINK, worth over $12 million, over the weekend. In traditional markets, the yield on the 10-year Treasury note appears to be breaking out of a prolonged downtrend as observers anticipate a hawkish Fed rate cut this week. This hardening of yields could inject volatility into risk assets, including cryptocurrencies. Therefore, it is essential to remain alert. Key Events to Watch Upcoming Token Events Conferences Token Talk By Francisco Memoria The Solana-based decentralized exchange Raydium has achieved a significant milestone, with annualized fees surpassing $2 billion, according to data from Artemis. The platform's revenue for the year is approximately $355 million, making it the second-largest decentralized application by this metric, surpassed only by collateralized-debt protocol Sky. Despite this, the industry is experiencing a slowdown, as evidenced by Pump.fun discontinuing its livestream feature and the memecoin craze easing. The number of active addresses using the platform has dropped nearly 50% from its peak, accompanied by declines in trading volumes and fees. Daily revenue, which peaked at $2 million on November 18, is now struggling to reclaim the $1 million threshold, with $585,000 recorded on December 15. However, activity on the DEX remains elevated, with daily transactions on Raydium still ranging between 10 million and 12.5 million, having grown significantly from just over 1 million at the beginning of the year. The protocol's native token, RAY, has also risen 7% in the past month, remaining above the $5 support zone. Derivatives Positioning Market Movements Bitcoin Statistics Basket Performance Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors Overnight Flows Chart of the Day While You Were Sleeping In the Ether UPDATE (December 16, 12:43 UTC): Adds Token Talk section.