I think it requires some deep and directed reflection, the feeling that the price gives. Especially if there is no actual change in behavior (any selling or buying) what emotions and thoughts do price changes produce? I'd love to read a psychological study.
I would like to read one too but I figure that Tversky and Kahneman did some work with it too. At a basic level, a loss has twice the impact of a gain so as markets fall it is seen as a heavy loss, even if one is actually up. I haven't bought that much and I came in to earn Steem, the markets haven't affected my steem holdings at all. Of course, one day I hope that steem is ore usable :D
The people who bought in at 7 cents are 400% up on those buys but they likely relate that the fall from the ATH is a loss.
The lower prices get the more base the reaction it seems, people get more animalistic in some sense which then translates into behavioural changes (rise in aggression?). I have said many times that Steem should not be relied upon but that is the same for the entire market as it is too immature to sustain as a steady support mechanism.
But, people are people and many look for a workless life, which crypto promises so, instead of hedging bets with real lfe work, they increasingly rely on what they get as profits, continually bleeding coinage. Someone is collecting though, the same people who didn't have to rely on it as an income so didn't need to sell any of their coins.
When it comes to Steem distribution, those who are reliant are bleeding, those who have other sources of income are buying in low. When things return, those who have lived a life of struggle will continue to do so if they haven't held the coins they have earned here as it is unlikely they would be buying in more now. While those with the means will be much better off. pity isn't it? If this does survive it will be an opportunity missed for many.