Steem - Prepare for some volatility
The price of steem is likely about to go for a ride and we can thank our friends in South Korea.
You may have been wondering why the price of steem has been up the past few days, well here is likely the reason why...
Bithumb announced that they would be re-enabling steem wallets in mid-January.
This was confirmed even more when this update was put out by Bithumb late yesterday:
The target for that resumption is roughly 3 am EST tomorrow morning.
Why is this significant?
If you look at the market place for steem currently, you will see that steem is currently priced at $.95 on Bithumb and priced at roughly $.38 on every other exchange.
That means that when Bithumb officially re-enables steem wallets, people are going to start furiously transferring steem into Bithumb trying to sell it for that $.95 price.
The resulting price action will probably be that of a falling price on Bithumb, possibly rather drastically.
However, it might also lead to a rising price on all the other exchanges as people buy steem on those exchanges and try to sell it on Bithumb.
A sort of "meet-in-the-middle" type of event between prices.
Then when you get traders jumping in on the momentum, who knows what happens to the price of steem.
How do I know this has been happening?
If you look at the recent price movement of steem you will see that just about all the volume is taking place on the Upbit exchange, which is also a South Korean exchange (like Bithumb).
Most likely when people got wind of steem wallets being re-enabled and prices being 3x-4x higher on Bithumb, they went out and bought up all the steem they could on Upbit with hopes of selling them for higher prices immediately when Bithumb re-enables.
This is a major arbitrage opportunity for those with a quick trigger finger.
Unfortunately most people reading this on Steemit.com won't be able to try and take advantage of this opportunity because you need to be a South Korean in order to have an account on Bithumb, well at least have a South Korean phone number.
That, and also the arbitrage opportunity will likely close in a matter of seconds as exchanges will take full advantage of it when it opens.
However, who knows what that might do to the market price of steem globally.
We are likely to find out within the next 12 hours...
Stay informed my friends.
Follow me: @jrcornel
Very interesting. I was wondering what was driving up the price of Steem.
This is likely the reason.
Those are great news
We will see what happens later tonight and early tomorrow morning. Hopefully good things.
Anyone seen a rally? 😩😩😩
We had a nice move from about $.27 up to about $.43 or so. :)
Awesome investigative work, @jrcornel.
Thank you. No fireworks, but perhaps the fireworks was the run up from $.27 to $.42 leading up to the event.
I'm almost sure ned have the South Korean phone number, hehe.
Haha, he probably does... Hopefully he is quick on the trigger! It will happen fast.
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Wow. This sounds like a great news and hopefully this will work and rise up the price of steem even more.
Thank you so much for this exciting update and looking forward to hear more from you, hopefully in the next few days.
It will be interesting to see how things play out tonight.
I'm glad you spelled the real reason for the price pump. It has been aggravating the hell out of me that people are posting that the price pump was due to @ned showing up. All that does is spin a bunch of newbies into some false idolization of someone that had nothing to do with the price pump and, in my opinion, doesn't deserve the credit.
Completely agree. He is more likely to be dumping right now and helping push prices down then he is to be doing anything positive to help push prices up.
I was planning on buying more Steem on Friday so I hope there is a downward correction by then!
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There very well may be... See what happens tonight/tomorrow.
Actually I was also thinking to try it out but I am not a south Korea. Anyway I am happy the steem price is rising up back and I hope it
Then you likely won't be able to, though if you have a friend over there...
Pretty sure you can sign up for bithumb even if you’re not from South Korea or have a SK phone # fyi ;)
The last time I tried I was not able to complete the sign up process and trade any currencies on the platform without it.
Hmmm, that's odd. I think I just went to the english site and then I had to get verified etc. It all took very little time if i recall correctly.