My opinion is that the seat tube is a good height for you, but the top tube is much too short. Many older frames were built like this. You could try a much longer stem.

You need to roll your hips forward and straighten your back. Having done that, your upper arms should make a 90° angle with your torso, and with hands on hoods, forearms horizontal, your elbows should be in front of your knees, maybe a 1" gap there. Obviously this frame and stem combo is much too short.

I don't know why people ride tiny bikes, but one sure sees that a lot.