BITCOIN IS DOWN TO THE LOWEST LEVEL SINCE JULY 2021

you know the fundamental thesis for bitcoin and Ethereum which is sort of it's more than 60 of the total value in crypto assets is that they increasingly move in correlation with stocks and other risk-on assets most notably the NASDAQ except for the fact that they tend to trade in more exaggerated volatile trading periods and of course, the crypto market never closes so you'll see trading over the weekend

now since the following sort of the f.o.m.c.'s meeting on Wednesday and cryptocurrencies saw a drop on Thursday and that continued through the weekend since Thursday we've seen about 305 billion dollars move out of the cryptocurrency market and during that time

we've seen bitcoin hit its lowest point and as I say hit its lowest point it's actually happened the within the last hour so investors traders, in particular, are still looking for the bottom at least in this sort of trading cycle and it's obviously pretty tough to tell you to know because cryptocurrencies don't necessarily trade on discounted cash flows technical measurements are really important for the asset class so people are oftentimes looking at sort of these key price points

for where traders might come in to buy the asset now 34 000 for bitcoin was a pretty strong point of resistance where buyers would come in we've since hit the hit below those levels you know we're trading in the mid thirty-two thousand dollar range so you know I think that traders apparently have more support at the 30 000 mark but it still remains to be seen whether or not they will come in at the same point obviously the 34 thousand dollar mark has been breached I've spoken to some institutional traders and they've sort of pointed out that you know there's not you know like a massive flood of institutions coming into short the market as it were more so what's happening in the macro geopolitical landscape that whole backdrop looks pretty poor right now

so a lot of institutions that have 

their money in crypto or did or are you know they're essentially selling off parts of their portfolio what 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 what I've heard is that may the rest of May and June don't necessarily look good for bitcoin and other cryptocurrencies

DAVID HOLLERITH