How Polonix and Bittrex have both contributed to the price drop of Steem
Since yesterday, Bittrex and Polonix stopped trading Steem and this has also contributed to the price drop of Steem. In the past, Bittrex and Polonix have had technical challenges with Steem just as ShapeShift.
According to @ura-soul who spoke with Dan, the admin of BlockTrades the reason why Polonix and Bittrex put Steem exchange on hold was due to technical challenges with the wallet software which would be resolved soon.
From what I've heard, bittrex and poloniex are just having some problems with their wallet software. We (BlockTrades) put out a potential fix for problems experienced by bittrex, and they're in process of trying to get our fix and use it now.
Whenever these major exchanges stop supporting Steem, suddenly there is a direct price drop in Steem as holders of Steem begin to feel as if they would not be able to ever cash out their Steem into Bitcoin or Cash.
BlockTrades has always been the only faithful exchange Steem has ever had, and we would encourage everyone to use them. Their support team responds instantly, their transactions are instant and the fees are minimal.
Crypto tokens are not backed by anything, not even the authority of the issuers or users, and for this reason one of the factors which determine the market value of a crypto tokens is its liquidity on the market.
When more and more main exchanges trade a crypto token, it gives investors and users confidence in the crypto tokens as they see they they would be able to quickly liquidate their funds whenever they want.
This is the same effect that made Bitcoin Cash what it now is - Bitcoin Cash only become official not after its first block was mined but when Via BTC added it to their exchanges and gave it a trading value.
The more exchanges to support Bitcoin Cash, the more valuable it would be perceived by investors and the more likely users will use it due to ease of accessibility.
Liquidity is one of the key factors in determining the price of crypto currency which accounts for the increase in price drop of Steem whenever Polonix and Bittrex suspend trading of Steem.
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Probably it's the same kind of people who obstruct steem as those that for more than a century prevented the electric car to become succesful. People with very big pockets that buy the folks of the exchanges, so that they can promote their own newer and sleeker platforms better.