No 10 AM BTC Dump? Bitcoin Price Rallies as Jane Street Trading Draws Attention
Key Takeaways
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Bitcoin rebounds amid Jane Street speculation.
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The speculation comes as the firm contests a lawsuit tied to the 2022 TerraUSD collapse.
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Macro and technical factors are also in play.
After weeks of stubborn morning sell-offs, Bitcoin jumped nearly 3% on Tuesday to around $65,000.
The move followed online speculation that trading firm Jane Street had halted a suspected 10 a.m. selling strategy long blamed by some traders for capping rallies.
Social Media Claims of a Halted Jane Street Strategy
For weeks, Bitcoin traders have been watching the same unsettling pattern unfold.
As U.S. equities open between 9:30 and 10:00 a.m. Eastern Time, Bitcoin’s overnight gains can often disappear within minutes, only for prices to stabilize later.
Since early November, Bitcoin has declined during the first hour of U.S. trading in more than 60% of sessions, typically shedding up to 3% in that window.
On Dec. 4, for instance, the token slid 2.1% within 18 minutes of the S&P 500 opening flat.
One of the theories behind this phenomenon, widely shared across Crypto X and Reddit, alleged that Jane Street was systematically selling Bitcoin on the hour and suppressing potential rallies.
Those claims intensified this week after investor Mike Alfred entered the discussion. He claimed to have spoken with an internal Jane Street source.
Alred said management had ordered an “immediate cessation” of manipulative Bitcoin trading and that a “10 a.m. algo” had been shut down.
“He thinks BTC probably goes up now,” he wrote.
CCN has reached out to Mike Alfred and Jane Street but received no response by the time of publication. These claims remain unverified.
Jane Street Legal Pressure Revives Scrutiny
Renewed criticism of Jane Street comes as the firm faces legal scrutiny tied to the 2022 collapse of Terraform Labs’ TerraUSD stablecoin and its sister token Luna.
The event erased roughly $40 billion in market value and triggered a broader downturn in digital assets.
On Feb. 23, Terraform Labs’ bankruptcy administrator filed an 83-page complaint accusing Jane Street Group, co-founder Robert Granieri and two employees of insider trading and market manipulation leading up to TerraUSD’s collapse.
The lawsuit alleges that confidential communications and non-public information were shared with the firm.
Jane Street has denied the allegations, describing them as “baseless.”
Pattern or Market Structure?
Despite the viral nature of the “10 a.m. dump” narrative, it is important to note that volatility around 10 a.m. Eastern Time is not unusual in global markets.
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