Jimmy Song: prices across the market are increasing as new money flows in

21 May, 2019 | Updated: 21 May, 2019
by Richard Allen
Jimmy Song: prices across the market are increasing as new money flows in

As Bitcoin’s price fluctuations continue to grab headlines, prominent Bitcoin developer and influencer Jimmy Song sat down with CryptoPotato at Consensus 2019 to discuss his thoughts on Bitcoin’s price action.

Speaking about Bitcoin’s price rally, Song said he agrees with technical analyst Willy Woo’s earlier statement regarding a correlation with the Bitfinex debacle. The exchange saw Bitcoin trading at a premium of as much as $300 which coincided with a string of negative news for Bitfinex.

Song stated this may have led people to participate in arbitrage trading - shorting Bitcoin on Bitfinex while placing long orders on other exchanges. He postulates that whales may have seen the increasing short orders on Bitfinex and decided to take out those shorts, resulting in Bitcoin surging past $7,500.

Song continues, stating once Bitcoin had passed  $7,500, he expected a retracement to around $5,000 or $6,000. While this hasn’t happened, Song states “A pullback, at this point, would seem much more reasonable. You can’t sustain that kind of parabolic advance.”

Song was then asked on where he thought the new money flowing into the market is coming from. “That’s the real question. No one really knows where the new money is coming from,” he said. “If it’s whales playing games to wreck all the shorts, then that money just comes back out, but it seems like there’s genuinely new money entering the scene, and that almost always means that price is increasing.”

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