Expected price movements from Algorand Governance end of period? (join the speculation)
I've been thinking for a few days about what influence the end of governance period can have on Algorand price.
Yes, it's pure speculation and pure price greed or whatever you want to call it. Don't get me wrong, I love the technology and the 3.0 future that's beggining, but I'm into crypto to try and make some side hustle money lol.
My reasoning is as follows: on DEC 25th the 2nd governance period opens, so we will be able to commit algo there for a nice APY reward.
It will stay open until JAN 7th, so I don't see any reason why anyone should rush.
On December 31th, the 1st period ends, so all ALGO staked there can get out. What do you think will happen to the price? Algo market cap is around 9B and Governance TVL is about 1.8B if I remember correctly. That means that price movements should'nt really be that relevant, right?
I'm guessing there's a lot of wallet holders waiting for January 1st to unstake their algo and go to yeldly, where all the action seems to be right now.
So I'd expect a price drop for algo on January 1st, from all the people unstaking and swapping for yeldly or selling for fiat... So my bet is January 1st ALGO dip, YELDLY pump. Therefore, I plan to swap all my ALGO for YELDLY on the 31st.
Catch YELDLY pump, then expect a second ALGO drop when all the staking APY is being distributed during January 1st to January 5th. All that ALGO getting out of reserves and getting into circulation should cause some inflation, right? So ALGO price gets a second dip.
This effect should stop after the rewards have been distributed, so on the 6th, seems like a good time to swap all that pumped YELDLY back to ALGO and stake it all into governance for a nice APY.
What do you think?