This wave of market activity is truly a solo celebration for Bitcoin, while other altcoins are facing hellish difficulties. It's hard to go long or short; when Bitcoin drops by 1 point, small coins drop directly by 5 points, and the methods of scamming investors in altcoins are becoming increasingly rampant. The current bull market can only be described as a Bitcoin bull market, with little relation to altcoins; retail investors are just being overly sentimental. Bitcoin is rising sharply, with not even a decent correction, the bull isn't tired, and it continues to advance vigorously.
Bitcoin breaks through $107,000, hitting a new high.
After Bitcoin set a record high of $106,660 on the 16th, it surged again today (17th) at 0:30, reaching a maximum of $107,796, setting a new historical high. As of the time of writing, it has slightly pulled back to $106,020, with a nearly 24-hour increase of 0.51%.
The accounting standards for cryptocurrencies established by the Financial Accounting Standards Board (FASB) last year officially took effect on the 15th of this month. According to this new regulation, cryptocurrencies such as Bitcoin held by U.S. companies will be recorded in financial reports at fair market value.
Changes brought by the new regulations:
Previously, the U.S. lacked accounting standards for cryptocurrencies, and companies typically had to classify cryptocurrencies as intangible assets, recording costs only at the 'purchase price'.
When prices fall: impairment treatment is required.
When prices rise: gains can only be recorded after actual sale.
This rule makes it impossible for financial reports to fully reflect the real value of a company's holdings in cryptocurrencies. For instance, MicroStrategy (the publicly traded company with the largest Bitcoin holdings globally) has complained to the SEC that this standard is unfavorable for companies and investors assessing the investment situation of cryptocurrencies.
Advantages of the new regulations:
The new rules allow companies to record cryptocurrencies at fair value and list them separately on the balance sheet:
The profits from the rise in coin prices can be directly included in net income.
Financial reports more accurately reflect the actual performance of the company's cryptocurrency investments.
For companies like MicroStrategy that invest heavily in Bitcoin and Ethereum, the new regulations will make financial statements more transparent and comprehensive, helping the board and investors make more accurate assessments.
That's all for today's article. We are currently in a bull market with a lot of excitement, and we share passwords every day.
