Why cryptocurrencies are making big moves — Including Dogecoin

that's where we begin with bitcoin and all the crypto spacing pretty massive swings over the past 24 hours from down 18 to flat negative once again right now bitcoin down to about 54 000 and change cryptos being seen by some as a risk age for the whole market so let's talk about what's behind these particular sell-offs joining me now are cnbc's kate rooney and coin shares chief strategy officer malcolm demiros welcome to you both melt and we'll just start with you um i mean do we have to when a crypto's up you know as much as it has been the past couple months 10 sell-off is is pretty garden variety or what do you think is there something more going on here yeah absolutely and great to have you back as well um you know it's been a fun time in crypto land certainly what we saw last week was a classic momentum trade going into the coinbase listing we saw a lot of activity in options markets and futures markets a lot of trade traders went levered long leveraging crypto very expensive coinbase did not have the outing we hoped for there wasn't enough volatility to drive prices higher people took off leverage throughout friday and then on saturday night between a 20-minute period we saw massive deleveraging over 7 billions in options liquidated in a 20-minute period so that obviously i had an impact but sunday we came right back with 80 billion of market volume in the bitcoin space so those dips are getting bought right back up so kate rooney of course as you know better than anyone only in crypto right now do you get these 20-minute intense sell-offs that have erased what 300 billion dollars in crypto market cap or something so what do you hear today is the dust settles are there people who say awesome now i can buy in at 54 but i still wish i could have gotten in at 19.

Exactly and great to see you kelly great to have you back but yeah only in crypto and only crypto do you see that happen on a saturday night into sunday so the the market never sleeps it's opened on the weekends of course uh but that's what people are saying today malcolm's exactly right a lot of action in the derivatives market that seems to have accelerated some of the losses there but you are seeing a bit of a bottom it's it's stabilizing it looks like around 55 000 some might be coming in to see this as a buying opportunity but one of the other data points that we saw from another blockchain firm glass node is that some of the wealthier buyers so-called whales were sort of stepping back at the same time as the retail buyers who were buying sort of smaller amounts around 600 uh ahead of the coin based listing retail buyers were getting in bigger investors were stepping back so you saw this sort of shift um ahead of coinbase and a lot of excitement from the retail buyer there true milton the bitcoin thing to me still makes a lot of sense because we've seen so many institutions getting in over the past three to six months what about dogecoin i mean this is like so there's there's two phenomena here right there on the one hand you have institutional interest driving a bitcoin on the other hand you have this massive retail interest that seems to be as they've realized driving up everything from gamestop to dogecoin you name it i mean am i describing it correctly or are there more commonalities no absolutely look um what we saw happen with doge last week was pretty astounding i think the catalyst there was the wall street vets community ahead of the coinbase listing again the wall street vets moderators decided to for the first time allow talk about cryptocurrencies in that forum only three coins though bitcoin ether and doge of course then a day later they reversed that decision because all the crypto folks went crazy in the forum and so i think part of the response to that was retail retaliating and really you know tick-tock investors made a song about memeing doge to one dollar and i think we see that playing out in real time here shepard smith here thanks for watching cnbc on youtube

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