Recently, Steem went down as low as 10 cents. It means that Steem was dumped ferociously during the short Bitcoin crash. BTC came back with 11% to previous support of $7500, but Steem recovered with 20% gain to 14 cents. However, both Steem's price and ranking (84) is still lower from than one year earlier (40 cents and 50s ranks).
What could be the reason?
What goes down parabolic and also returns up parabolic, in traders sentiment.
Before the BTC's down turn Steem was up to 15.5 cent based on positive vibe from the steemfest. Steem was dumped without mercy having major pair with BTC. At BTC's downturn, traders remain more pessimistic about altcoins.
At BTC's positive move, Steem got back its momentum from the earlier positive movement.
In the meantime, the biggest mover is the SBD which is 32% up from its recent price of 58 cents. Probably SBD potato day is helping SBD's price which may in turn may helping Steem's price.
Another positive thing is that now altcoins are moving along with BTC in more aggressive way in positive direction. Earlier, in most of the BTC's up movement, altcoins remained flat or even went negative.
If BTC returns to positive $10K territory, then hopefully Steem will return to 20 cents and SBD $1 which will be a great recovery.
Now the big question is that is 10 cents the lowest point of this mega altcoin bear run. The answer is nobody knows. I, personally was so certain about 21 cents as the lowest point for Steem's bear run during December, 2018 when BTC hit its recent lowest point at $3150. But now BTC went down $6750 and but Steem crashed to 10 cents. Therefore, I am not sure that BTC can't go lower than $6K or Steem 7 cents (all time low).
Hopefully, Steem and altcoins negative correlation have altered and this positive correlation will continue. Moreover, BTC's dominance has fallen from recent peak of 70%.
In the meantime, US stock indexes have hit all time high again on US-China trade optimism. It means that FED literally pumped the market with interest cut and quantitative easing since trade deal insurance was literally a bluff. It also means that future gains from stocks will be negative or stagnant for next couple of years. Now there is a FUD among the investors that any democratic president will crash the market. It means that Market has higher probability of crash in 2020 since democratic candidates are ahead in polls, at least.
It simply means that stocks are keeping pumped with FOMO until it hits a big correction. What will be next positive news since no rate cut is in the horizon, unemployment rate can't go lower, GDP growth is slowing, finally, consumer confidence will fell down from all time high. Somebody has to poke this bubble. May be negative tweet from the President Trump will show the path for major dump!
Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions. This opinion is only for educational purpose.
Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.
Thanks for reading.
Cryptominer , occasional trader and tech blogger since 2013
