By
Steve Muchoki
May 6th, 2024
The price of Bitcoin, the world’s largest digital currency by market capitalization is trading at a loss at the moment as driven by conflicting fundamentals in the cryptocurrency ecosystem.
According to data from CoinMarketCap, BTC is currently down by 1.44% to $44,169.87, as the market bulls strive to keep the price ranging from its daily low of $43,998.32 to a high of $45,952.06. Should price slip below the $43,000 support level, imminent sell-offs may be experienced which will further lead to price depression.
The current market outlook has been bearish since the past week, as the collective efforts by Bitcoin (BTC) proponents to change the tag in the American Infrastructure Bill failed. The proposed impact of various regulations in China, amidst a growing clampdown on cryptocurrency-related activities and tech firms, is also weighing down on the global cryptocurrency market.
Besides Bitcoin, Ethereum (ETH) is also trading at a loss of 0.85% in the past 24 hours to $45,952.06. However, the top 10 largest cryptocurrencies have a mixed performance with Binance Coin (BNB) and Cardano (ADA), pushing forth a growth of 2.62%, and 6.26% respectively. Overall, the global crypto market cap is down 0.80% to $1.89 trillion.
Bitcoin, Altcoin’s Price Amidst Complimentary Market Fundamentals
The price cushion Bitcoin is experiencing is been provided by the crypto market’s fundamentals which “remain quite strong” according to Mati Greenspan, CEO of Quantum Economics. Cryptocurrency-based transactions accounted for more than $233 million of the $565 million revenue posted by the Robinhood Markets Inc (NASDAQ: HOOD) in its first-quarter earnings report. This figure shows an increase in the company’s crypto revenue share from 17% in the first quarter to more than 51%.
Dogecoin (DOGE) has remained a major driver of the Robinhood’s crypto transactions. The coin accounts for a total of 61% of the firm’s revenue, a revelation that is weighing in positively on the coin’s price. At the time of writing, Dogecoin is changing hands at $0.2986, up 3.12% in the past 24 hours according to CoinMarketCap.
Despite this outlook, Robinhood has cautioned investors that it expects a slowing down in the rate of cryptocurrency transactions, a scenario that can drastically impact its revenue.
“If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and results of operations could be adversely affected,” the company warned in a filing.
The demand on Bitcoin by both retail and institutional investors has also fueled the inflow of capital into startups offering services in the crypto ecosystem. These fundamentals are helping to keep the prices of Bitcoin, and the altcoins stabilized from the pangs of harsh regulations.