Bitcoin’s price has been a hot topic over the past several days with the return of price exuberance. Bitcoin expert, developer, and influencer Jimmy Song noted a price pullback for the asset might be logical.
During the recent Consensus Conference, CryptoPotato was able to snag an interview with Song, catching up on Bitcoin price and his new book, Programming Bitcoin. CryptoPotato’s last chat with Song was an in-depth video interview back in the peak of the 2017 crypto bubble.
BTC’s Recent Surge, A Result Of Arbitrage?
Regarding Bitcoin’s move up, Song said technical analyst Willy Woo’s thoughts made sense, which included a correlation to BitFinex exchange drama. In sync with recent negative news for the exchange, Bitfinex saw bitcoin prices at a premium of more than $300 at times, comparative to other trading platforms.
Song said this occurrence might have led to people participating in arbitrage trading, shorting BTC on BitFinex, while placing long order trades on other exchanges. He posited Bitcoin whales might have seen the large amount of shorts piling up on BitFinex, and in turn, might have looked to take out those shorts. These events may have led to bitcoin powering through the $7,500 range (by May 14, the time of the interview), Song explained.
The Bitcoin Correction Expected
As far as further price action up past $8,000 goes, Song expected a retracement after reaching $7,500, down to around the $5,000 or $6,000 area. In contrast to the expected outcome, however, Bitcoin held the upper price levels.
Song’s comments showed similarity to Tone Vays thoughts on price action, acting illogically at those higher levels. “A pullback, at this point, would seem much more reasonable,” Song said, as of price action on the afternoon of May 14 at the time of the interview. “You can’t sustain that kind of parabolic advance,” Song added.
The Bitcoin expert also questioned the source of the new money that entered the market. “Who’s actually putting in the new money,” he said.
“That’s the real question. No one really knows where the new money is coming from. 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.”
The Bitcoin aficionado said he did not know the origin of the fresh capital, although he stated the existence of a few unconfirmed rumors on possible sources for that new money flow.
A New Book
We also caught a few details on Song’s book Programming Bitcoin, which he recently finished. Song saw a long line of interested people waiting for an autographed copy of the text at a book signing earlier in the day during the conference.
The inspiration for Song’s book stems from the many seminars he does on the topic of blockchain programming. “I’ve been doing my seminars for a while,” he said. “Part of it was I wanted to be able to scale it.” Having that knowledge in a text has the potential to reach a vast audience.
— Tone Vays [#UnderstandBit] (@ToneVays) May 14, 2019
Before writing Programming Bitcoin, a publisher contacted Song about writing a book on the blockchain technology. The outline Song drafted was Bitcoin-specific, however, so he decided to explore his options on other publishers, settling on O’Reilly Media. The author mentioned positive comments on working with O’Reilly.
Song also said he is working on another class, and “eventually another book,” which would dive into the area of hardware wallet programming. “I think this is something that a lot of crypto OGs want or at least bitcoin OGs,” the expert said. “They don’t trust hardware wallets,” he added, noting uncertainties regarding the physical hardware and possible “backdoors” for access.