Since the Pi wallet launched the ability to buy Pi directly within the wallet, based on the logic mentioned earlier, the subsequent comparison with the forex trend is as follows:
The attached chart shows the trends of EUR/USD and PI/USDT.
As mentioned earlier, since the wallet provides fiat currency liquidity, a decline looks at non-USD forex pairs, while an increase looks at Pi supply.
Therefore, we can observe some correlation in this trend.
The time of the downward movement starting to reach a low point before 20:00 on the 30th is the same for both.
The time comparison of the high point at 2:00 on the 31st and the low point at 3:00 on the 31st is also the same.
Later, around 9:00 on the 31st, the increase in Pi is related to the total of forex + Pi buying, hence at this time, Pi exhibited buying pressure, leading to Pi's increase being more than that of EUR. This is completely in line with the speculative logic.
So why is it different after 9:00 on the 31st?
Because the increase is due to forex + Pi, and since there is more buying pressure on Pi, it will be automatically balanced by a liquidity constant formula after the buying pressure ends. Therefore, the comparison from 3:00 to 13:00 is the same.
Conclusion: According to the logic from the previous article, it is very consistent that declines are viewed through forex, while increases are viewed through Pi supply, which is forex + Pi buying.
One should understand that this means whenever there is favorable news regarding Pi, the trend will be very vigorous.
Some might raise a question: If the upward trend is vigorous, can the downward trend also be vigorous?
Here, let me explain: the downward vigor comes from Pi investors selling on the exchange, which reflects the exchange's price. As explained in the previous article, the on-chain price has become completely independent of the exchange. The exchange price is already a private trading market, akin to the price of an in-game item, unrelated to on-chain currency or fiat.
A decline in the exchange price will not affect the on-chain value, as there is no sell button on-chain. On-chain is entirely based on a massive forex reserve for liquidity.
