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RE: SBD, What’s going on …

in #steem7 years ago

Another possibility is what I call "crypto slosh", and I know for a fact it is happening, but I have no way to measure the degree.

A lot of fiat went into the high end crypto market (the top 20).

When the price of Bitcoin etc. got high, many people took profits, but not in fiat.

Some of that profit got shifted into other cryptos directly to avoid taxes on said profits.

I'm of the belief that the "sloshing" of cryptos in the bathtub of digital currencies has caused some spill-over (instability) in the smaller cryptos.

This may cause some volitility in the short term, but could be beneficial in the long term, as a rising tide lifts all boats.

I think the tide has come in a LOT quicker than expected, but will eventually settle out.

Thats my 2 steem worth!

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"crypto slosh" sounds like a contributory factor indeed.

Looking through the daily volumes for SBD something happened noticeably on November 1st. This begun the tailspin. The rising tide leaves so much money to invest in ALTs , as you point out, and that is also contributing to the subsequent elevated levels. Who is continuing to buy this stuff though?

I suspect Bitcoin, Eth, Ripple and Dash profit takers, but all I have is anecdotal info.

A lot of the US tax bill stuff started in ernest in late Oct.

If so, we'll keep seeing shifts into minor cryptos and out of major cryptos until midnight Sunday by US holders of crypto.

As for the rest of the world, there's no telling without knowledge of their tax systems.

I wouldn't get too riled up about the prices yet, but definately watch what the other cryptos are doing.

Goldman Sachs has a crypto trading desk and Im sure other big banks also have them, so there's some possible major contributors.

Wouldn't be surprised to see central banks getting a slice of the pie too.

I think the big boys have seen the writing on the wall and are setting up viable escape routes from historical fiat systems.

But you never know...

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