Can anyone explain, why Steem is so low as BTC is also holding it position above 6000 level?
Can anyone explain, why Steem is so low as BTC is also holding it position above 6000 level.. As last time BTC hit bleow 6000 but steem has maintain its position fairly above 1?
The reasons are simple as they are complicated.
First and foremost being that Bitcoin is the oldest crypto that there is. Is we trust the anti-fragile nature of this phenomenon then that would make the bitcoin the most resilient crypto in existence.
Then there is the Lindy effect to be considered (Def: a concept that the future life expectancy of some non-perishable things like a technology or an idea is proportional to their current age, so that every additional period of survival implies a longer remaining life expectancy)
Then we also need to keep in mind that Bitcoin is also the market leader. Thus the crypto community does try make sure that Bitcoin is in a good position because its position affect's all coins.
Steem on the other hand enjoy these perks to a much lesser extent. That being said, we need to keep in mind that steem token unlike many others has a real world use. This is an unbelievable advantage over other coins.
Bitcoin is the most popular cryptocurrency in the market and have a lot of liquidity. Right now the level of resistance is around 6k at the moment. Mining a bitcoin it cost around 5500$ from memory, I read it on an article. Do not expect the miners will let go the price below this psychological level.
When the market face a bear market, a lot of crypto investors prefer to sell their Steem for Bitcoin. This effect has a tendency to make pressure on sales and the price decrease.
Crypto blog: https://chesatochi.com