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"everybody" wants steamwallet for the sales. the prices will go back to normal after the sale.

I think its more that ppl get keys to trade for out of region discounts. So the sellers then put up mass key amounts that they need to sell fast to replenish their wallet with cash spent + some profit so they can get the next person games who had previously gotten keys from the market etc.

Its like this with every major steam sale, it is like destrado says, cross region traders sell alot of games on these occasion and are therefore flodding the market with the keys the traded the games for.