Why are cryptocurrencies dropping?

Will bitcoin is slumping to its lowest level since 7/20/21 as a fall in tandem with equities stocks falling again to start the week the crypto carnage is extend into Ethereum and Selanne as well let’s take a look at look at where those are trading right now. There you go that’s a big chart down more than 6 percent a bigger losses for ether and salon as well joining you with the latest as Yahoo finance’s David Hollerith. David how do you explain this I mean it is it is an ugly day across the board but what are what are you seeing on the crypto side. Yeah well the kicker I think you know the the the fundamental thesis for big coin an Ethereum which is sort of it’s it’s more than 60 percent of the total value in crypto assets is that you know to be increasingly moving correlation with stocks into another risk on assets most notably the nasdaq except for the fact that they tend to trade more exaggerated ball tool trading periods and of course the crypto market never closes so you see trading over the weekend now since following sort of the FOMC’s meeting on Wednesday you know crypto currencies salt a drop on Thursday and that continued through the weekend since Thursday we seen about $305000000000 to move out of the cryptocurrency market and during during that time we’ve seen big coin hit its lowest point in that as I say hit its lowest point it’s actually happened in the within the last hour or so investors traders in particular still looking for the bottom at least in this sort of trading cycle and you know it it’s obviously pretty tough to tell you know because crypto currencies don’t necessarily trained on you know discounted cash flows technical measurements are a really important for the asset class so people are all oftentimes looking it for these key price points for where traders might come in to buy the asset now $34000 for big coin was a pretty strong point of resistance where buyers would come in we’d since hit the hit below those levels you know we’re trading in the mid $32000 range so you know I think it’s traders apparently have have more support at the $30000 mark. But it still remains to be seen whether or not they will come at the same point obviously the $34000 mark has been breached I’ve spoken to some institutional traders and they sort of pointed out that you know there’s not you know like a massive flood of of of institutions coming in to short the market as it were more so what’s happening is is that the macro geopolitical landscape that whole backdrop looks pretty poor right now so a lot of institutions who have their money in crypto or did or are you know what we’re what you know they’re essentially selling off parts of their portfolio would you call trimming so you know they’re gonna wait until there’s a little bit more certainty until maybe a temporary bottom is found for the asset class but largely what I’ve heard is that it may the rest of may in June don’t necessarily look good for bitcoin and other crypto currencies.

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