“Bitcoin price stabilizes at $105 thousand: what is happening on the cryptocurrency marketBitcoin rose to $105.3 thousand after the Fed’s decision to leave rates unchanged. Tesla revalued its crypto assets according to
new standards, adding $600 million to its profit.”, — write: unn.ua
Bitcoin was given an additional boost by Tesla’s announcement that its profits had increased by $600 million thanks to its cryptocurrency assets. However, this was more related to a change in accounting rules than to real financial flows.
In recent weeks, cryptocurrency markets have experienced increased volatility. Investors were nervous about possible changes in the regulation of digital assets in the United States, especially after Donald Trump’s statements about the need for a more liberal approach. Additional pressure was created by his plans to increase trade tariffs, which could affect global financial markets.
The global stock market situation has improved somewhat after Wall Street recovered from a large-scale sell-off in technology stocks. The main factor behind this reaction was concerns about China’s new artificial intelligence program. Nevertheless, US stock futures showed positive dynamics during the Asian trading session.
As of 00:36 Eastern Time (05:36 GMT), bitcoin was up 3% to $105,304.6. The market was closely following the statements of Fed Chairman Jerome Powell, who confirmed that the central bank is in no hurry to cut rates. In his opinion, the US economy is showing signs of stability even as inflation slows. He also emphasized the Fed’s independence from political influence, hinting at Trump’s calls for further monetary easing.
Despite some relief after Powell’s speech, maintaining high rates for a longer period may put pressure on risky assets, including cryptocurrencies.
Tesla has revised the valuation of its cryptocurrency assets.
Tesla’s fourth-quarter financial statements contained an interesting update: the company revised its bitcoin reserves valuation using new accounting standards.
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According to the new approach, the 9,720 bitcoins on Tesla’s balance sheet are now valued at $1.07 billion, which is significantly higher than the previous book value of $184 million. This has had a significant impact on the company’s financial performance, adding $600 million to its profits.
The revision of the asset value took place amid the rapid growth of bitcoin over the past two years. It was also made possible by a change in accounting rules adopted by the US Financial Accounting Standards Board. From now on, companies that own digital assets are required to update their valuation in accordance with the market value on a quarterly basis.
Despite the positive effect of this revision, Tesla’s overall financial results in the fourth quarter did not meet analysts’ expectations.
Not only bitcoin, but also other digital assets have shown positive dynamics.
– Ethereum (ETH) rose by 2% to reach $3,193.60.
– XRP added to its value, rising to $3.1216.
– Cardano, Solana, and Polygon grew from 1% to 4%.
– Dogecoin (DOGE) is up 1.3%.
At the same time, the $TRUMP memecoin, created by Donald Trump in January, remained unchanged, although it had previously lost about 60% of its value from its peak.
Despite the positive trend, the cryptocurrency market remains in a zone of heightened uncertainty. Investors are cautiously assessing the prospects for further regulation of the industry, as well as the impact of the Fed’s monetary policy on future exchange rate fluctuations.
Recall
On Monday, January 27, the largest cryptocurrency fell to $98 thousand. The reason for this drop is believed to be the tariff threats of US President Donald Trump.