Some Quick Thoughts on the Price of Steem...

in #steem8 years ago (edited)

Current Price of Steem:


In dollars: $0.089186 (18.87%) 


In Bitcoin: 0.00007272 BTC (17.97%)

Market Cap

In dollars: $21,641,333

 
In Bitcoin: 17,645 BTC

Volume (24h)

In dollars: $283,371


In Bitcoin: 231.04 BTC

Circulating Supply

242,654,196 STEEM

Total Supply

259,628,290 STEEM 

The above data is taken from: https://coinmarketcap.com/currencies/steem/  

My Thoughts:

Some interesting things stick out when looking at the numbers above. For one, the price is actually going up. That is a welcome sign. Secondly, check out the dollar volume traded in the last 24 hours, ($283k). That is not a small number... In fact that is one of the largest numbers I have seen in some time. That shows that a good amount of money is changing hands at these low prices. That is a good thing and often what you see at or near bottoms. However, I am not so sure as of yet this may indeed be the signs of a bottom...

The biggest question in my mind becomes, why is Steem going up?

The way I see it, the likely culprits are one of 3 possibilities. The likeliest of 3 in my opinion are listed below:

1. Is Steem going up because most of the other cryptocurrencies are going up right now?

If you haven't checked many other currencies you couldn't throw a rock without hitting one that is going up significantly today. Is this a case of a rising tide lifts all boats? You see that a lot in the stock market but things have been quite different in crypto land. 

In my opinion this one is not the most likely as we have seen plenty of other days when most currencies were moving up while steem was moving down. However, now that we have passed the 13 week power down time frame, will steem move more like the others in terms of price action?

2. Is Steem going up because of the HF that is scheduled to happen tomorrow?

In my opinion this is the most likely culprit. If you have looked at recent history you will see that steem often spikes on the eve of HF implementation. In the past you would see a couple day run up of massive volume and massive percentage gains a couple days before the HF, only to see the price fall right back down to where it was (and eventually lower) in the days and weeks following the HF. Will this be more of the same? Unfortunately that is what I am thinking...

Big players run the price of in anticipation of big news hoping to gather in many more buyers with hopes of selling to those buyers at higher prices. 

3. Is steem going up because of the current experiment taking place on the platform regarding vote canceling?

If you haven't been following yesterday and today there has been a new experiment going on being performed by many of the active whales on the platform. They have either stopped voting on posts or are downvoting the other whales that are still voting in an effort to "even out the playing field". There are several reasons why they are doing this, which I won't get into here. 

There are those who are strongly in favor of this idea and those that are strongly against it. Could this possibly be the reason for the recent price spike? It certainly is possible, but in my mind this is probably the least likely culprit of the price spike...

*Steem could also be going up for some other reasons not mentioned above. Cryptocurries are ripe for manipulation. 

Conclusion:

So there you have it. My opinion is that the recent price spike is just a run of the mill ramp up into the event type of thing where big holders sell the actual event. We have seen it time and time again with Steem and we likely are seeing it play out yet again this time. I hope I am wrong though as I would love to see Steem sitting somewhere north of $.30...

What do you guys think? What is the likeliest driver for the recent price spike?

Follow: @jrcornel

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I think 2 and 3 are source of some hope, at least it's an indicator that work is underway.

Good points. What do you think about today's price spike?

That is certainly a possibility... finally less supply...

However, the massive surge in volume indicates that there is also a surge in demand taking place...

I am kind of new to the platform. Please explain what the HF is?

He is talking about the new Hardfork which is Scheduled to happen on the 14th

OH, right. Thanks.

Lots of changes you can read up on them @steemitblog

HF stands for Hard Fork, that is where changes to the code will be implemented. We will see some major changes with the way steemit.com operates after tomorrow.

There is no HF tomorrow. Originally there was one scheduled but it got pushed back because of the need for more changes. There has been no date set. You can see the details on the steem releases page on github: "The hardfork will be scheduled when the release is tagged" (has not happened yet)

I understand what Hard Fork is, it just didn't come to my realization that there was an "abbreviation" of it. Thanks though. Your article rocks.

No problem! Any thoughts on the sudden price surge?

I'd just like STEEM to reach atleast $0.15 - that would inspire us to produce more quality content. Looking at other cryptocurrencies though, they are shooting off the roof, especially after the rejected Bitcoin ETF. (Not sure if that is the main cause of it though as I never got the chance to dig deeper). Going back to STEEM, I just hope that the growth can maintain its current rate.

Yea a big reason for the continuous drop in price over the past 5 months has been a result of large stake holders powering down and selling. The new 13 week power down rate just passed it's 13th week the other day which means that a lot of the selling could be in the rear view mirror. We shall see...

thanks friends already share this good news, it is very helpful for me that is still unstable.
and hope may be useful also for other readers.
You are very kind and care about each other.
good luck. !! @jrcornel

Thank you!

you're welcome @jrcornel
wish you all the best :)

Resteemed

Thanks Gavvet! I see the price touched near $.095 this morning. Hopefully it can hold the gains post HF (whenever it eventually happens) and not just sell right back to where it was, like the previous times...

when the the price of steem recovers for 33 consecutive hours, that is the real recovery, until then I speculate the bottom for the price of steem is less than 1 cent, and will get there very fast after it hits 3 cents

It's possible... It's also possible that someone just wants some very cheap steem ;)

yep, I am willing to pay what is worth, considering all the free steem generated by hyper inflation in 2016, of which I got about 60,000 free steem, and still have 45,000 more that I am selling every week

A downvote was applied to partially counter earlier whale votes as an experiment to reduce whale domination of voting influence. Not intended to express an opinion on the content nor result in a net reduction of rewards or reputation (automated notice)

I think it is the slowing down of powerdowns (supply) and the excitement in the space.

That is certainly possible. Thanks for the insight!

I am watchingggg

The run is continuing slightly today with a brief touch of $.095. Hopefully it holds!

Keep us updated ! WIth all recent news it will be a bumpy ride it seems .

lol by the way, quick question if a whale posts and upvotes his post, will you flag it :D just came up, good luck with the experiment, you are getting some hate I have to say. I hope people don't take it so seriously and actually it's good to have done this before the hardfork. It's a bit damaging, but at least it will challenge people and we can see who will manage to not get to the I hate bad whales mentality :D

Good question ! Good answer !

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