The main reason fall in the price of Steem is the downward pressure coming from Bitcoin. That's because all altcoins, including Steem, rise and fall with the price of Bitcoin.
The reason for this is the "Ripple Effect" that Bitcoin creates throughout the cryptocurrency market. This happens because of the small size of the entire cryptocurrency market, and Bitcoin's dominance over it. As of today, Sept. 12, the market capitalization for all cryptocurrencies is $187 billion USD. Out of all these, 57.9% belongs to Bitcoin, whose market capitalization is $108 billion USD during the same timeframe. The coin with the second largest market capitalization doesn't even come close, with Ethereum's $17 billion market capitalization, only worth 9.3% of the entire market.
How does Bitcoin's domination create a ripple effect? As a consequence of Bitcoin's domination, majority of the Fiat to Crypto and Crypto to Fiat transactions happens through Bitcoin. This therefore creates a bottleneck that impacts the price of all cryptocurrencies, much like how an airport with a single Terminal can cause air traffic for several airplanes.
So, if a Steem user wants to trade his Steem for Fiat, he will have to first trade his Steem for BTC, before trading the BTC for Fiat. However because the price of BTC is low, the Steem was therefore affected because the gateway used to get Fiat was BTC. This is what happens to most cryptocurrencies. And this is why Bitcoin's movement pretty much dictates the movement of the entire market. Sure, you can choose a different cryptocurrency as your gateway, like Ethereum, but compared to Bitcoin there isn't as many opportunities for this trade. Bitcoin is still the dominant coin, after all.
How can this be changed? The only way to weaken Bitcoin's impact on the market is to not make Bitcoin so dominant. Basically, this requires increasing the market capitalization for other cryptocurrencies. And of course, by creating more exchanges that allows Fiat to Crypto and Crypto to Fiat transactions, using more altcoins as a gateway. This would have the effect of building additional terminals in an airport to allow more concurrent landings and takeoffs. In terms of crypto, this means minimizing Bitcoin's downward spiral because we could have the option of finding an altcoin in the green when converting to Fiat.
You should know most cryptocurrencies price are in red now. Most are falling drastically and STEEM is no exception.
The demand for STEEM is low as many are selling off due to the FUD of the cryptocurrency market. It is hoped with time, everything will come stabilizer and increase.
I'm no Crypto Expert but what I know is that the current market price of STEEM and other alt coins for years now have been deeply tied to the market price of BITCOIN.
If the market value of Bitcoin goes up, STEEM and other (most) Alt coins goes up as well. If BITCOIN goes down (which is what's happening lately) then STEEM and other (most) Alt coins goes down as well.
Until STEEM gets enough huge investors who fully understand the potential of the STEEM Blockchain and doesn't give in to Fear, Uncertainty and Doubt, then for months it's market price will be deeply tied to the price of Bitcoin.
Most cryptocurrencies ride on the price of the bitcoin on the cryptocurrency market and so that means they
follow the price behaviour of bitcoin on the market and their prices will go up when bitcoin price goes up same
way their prices will go down when bitcoin price goes down,,,so that is the current major reason why steem is falling right now simply because the bitcoin itself is
falling....i believe the solution is that when steem gets very huge demands and very huge investments then
that is when steem can be a cryptocurrency that can stand on its own without riding on the back of bitcoin to determine its own price on the market...