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RE: STEEM-flow monthly report #8
Very good stats. Is the fact that more steem seems to be going out (powering down) than is coming in a cause for the fall in price?
I know all cryptos are down the last few days but it only makes sense that the price is being depressed by this. So why is it happening? Arent the whales, the ones who could move that much out, dedicated to the long term?
In my opinion, as I see Withdrawals has constant rate in average and STEEM flow prevails in direction to exchange. It is definitely a pressure to ex-rates. Only new users constantly growth and STEEM demand increase could support the price in long term.
STEEM price is correlated to Bitcoin price as well. So, now BTC drops (price correction) after unprecedented historical growth and pulls other alt-coins down.
Why is steem correlated to the price of BTC?
I figured most altcoins tend to go in the opposite direction of BTC. Of course, the last couple days all go in one directions since the entire sector was painted very red.
You could see all coins mostly red: https://coinmarketcap.com/. BTC is almost a half of whole market and shows the main trend for investors.
Here I found some research with proof: https://cdn.patricktriest.com/blog/images/posts/crypto-markets/Cryptocurrency-Pricing-Analysis.html