There are many whales right now powering down, including @ned, the Steemit founder and CEO. As of 4 months ago, there was about $8m SP being actively powered down, and $6m SP being powered up. This imbalance in Steem being taken out of the system and Steem being put in ends with about 2m SP more then there were before the power ups and downs.
Now, for people to suddenly power down everything, there had to be a price drop or some sort of bad news, leading many whales to attempt to jump ship ASAP. As soon as some people try to sell off massive amounts of Steem, the Steem price will drop to compensate. But with the Steem price so low, you get paid a lot less then if the Steem price was high, so you might need to power down some SP to pay the bills. But when people power down, they introduce much more Steem into the system to sell of to pay their bills. And we're back where we started. It's a long loop of getting scared and selling off Steem, and can only stop with some good news or all of the people wanting to powering down finishing.
You can find this blog to hopefully explain what is going on-
https://steemit.com/steemit/@bycoleman/steem-price-under-massive-pressure-as-more-whales-power-down
There are many whales right now powering down, including @ned, the Steemit founder and CEO. As of 4 months ago, there was about $8m SP being actively powered down, and $6m SP being powered up. This imbalance in Steem being taken out of the system and Steem being put in ends with about 2m SP more then there were before the power ups and downs.
Now, for people to suddenly power down everything, there had to be a price drop or some sort of bad news, leading many whales to attempt to jump ship ASAP. As soon as some people try to sell off massive amounts of Steem, the Steem price will drop to compensate. But with the Steem price so low, you get paid a lot less then if the Steem price was high, so you might need to power down some SP to pay the bills. But when people power down, they introduce much more Steem into the system to sell of to pay their bills. And we're back where we started. It's a long loop of getting scared and selling off Steem, and can only stop with some good news or all of the people wanting to powering down finishing.
Price is going down as I am interested in buying at lower price, so market is doing me a favor. You can take the advantage too.