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RE: Steem Price under Massive Pressure as more Whales Power Down.

in #steemit6 years ago

FUR'd for more visibility and support.

But can we also assume power downs are the whales' best strategy to protect their investments? If I know that Steem is headed for 0.85 or even lower later this year then wouldn't it be best to liquidate holdings at $1.77 invest it somewhere else like SBD which is doing almost 30% better at $2.31 then just buy Steem later when it hits 0.85? Or maybe in some other more traditional investment alternatives like bonds or stocks not necessarily SBD. Just a thought.

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Thanks Gems.

Your thought would require that a trader is so perfectly in tune with the market that they KNOW that the price will drop to a certain place, so they are willing to forego their daily profits, to make more later when they buy back in.

Whales make a huge return on their investments (30% or more annually), so to try to time the market for a "maybe" is not that great of a strategy.

My guess is that the power downs are really very simply cash flow problems, plain and simple. Just like margin calls force people out at the worst possible times.

Blessings!