The price of Bitcoin, the world’s largest digital currency by market capitalization, is trading at a loss at the moment due to conflicting fundamentals in the cryptocurrency ecosystem.
Bitcoin price suffers losses when the crypto market sees mixed fundamentals, according to data from CoinMarketCap, BTC is currently down 1.44% to $44,169.87 as market bulls struggle to keep the price ranging from its daily low of $43,998.32 to a high of $45,952, 06. Should the price fall below the $43,000 support level, imminent sales may occur, which will further depress prices.
The current market outlook has been bearish since last week, as the collective efforts of Bitcoin(BTC) proponents to change the tag on the American Infrastructure Bill have failed. The proposed impact of various regulations in China, amid a growing crackdown on cryptocurrency-related activities and technology companies, is also weighing on the global cryptocurrency market.
- Bitcoin prices suffer losses when the crypto market sees mixed fundamentals.
In addition to Bitcoin, Ethereum(ETH) is also trading at a loss of 0.85% in the last 24 hours to $45,952.06. However, the 10 largest cryptocurrencies have a mixed performance with Binance Coin (BNB) and Cardano (ADA), generating a growth of 2.62% and 6.26%, respectively. Overall, the global crypto market capitalization fell 0.80% to $1.89 trillion.
Bitcoin, the price of Altcoin amid complimentary market fundamentals
The price Bitcoin is experiencing is provided by the fundamentals of the crypto market, 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 published by Robinhood Markets Inc(NASDAQ: HOOD) in its first quarter earnings report. This figure shows an increase in the company’s encryption revenue share from 17% in the first quarter to over 51%.
Dogecoin(DOGE) has remained one of the main drivers of Robinhood’s crypto transactions. The coin accounts for 61% of the company’s revenue, a revelation that weighs positively on the price of the coin. As of this writing, Dogecoin is changing hands for $0.2986, a 3.12% increase over the past 24 hours, according to CoinMarketCap.
Despite this outlook, Robinhood has warned investors that he expects a slowdown in the rate of cryptocurrency transactions, a scenario that could dramatically impact its revenue.
“If the demand for transactions on Dogecoin declines and is not replaced by a new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and results of operations could be adversely affected,” says the company.
Bitcoin demand by 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 Bitcoin and altcoin prices stabilized due to stringent regulations.