The 10 AM Bitcoin Dump Theory: Fact, Fiction, and the Alleged Role of Jane Street

Bitcoin experienced a 3% rebound to $65,000, with speculation pointing to a potential halt in a 10 a.m. selling strategy by Jane Street. This pattern, where Bitcoin drops during U.S. market hours, was reportedly a frequent occurrence, particularly in November. Claims intensified after investor Mike Alfred suggested Jane Street ordered an end to the strategy.

Bitcoin's price has been observed to drop around 10 a.m. ET in U.S. trading hours, leading some to speculate that Jane Street is responsible for a systematic sell-off. This theory gained traction after the firm faced a lawsuit related to the 2022 Terra collapse.

The sudden halt of a daily 10 a.m. sell-off in Bitcoin, following a lawsuit against Jane Street, has led traders to speculate about the firm's role in the market. The firm is also being accused of insider trading during the 2022 Terra collapse.

Why Did This Happen?

A detailed analysis suggests that Jane Street has been systematically suppressing Bitcoin's price through algorithmic sell programs that coincide with the U.S. market open, with Bitcoin shedding up to 3% shortly after 10 a.m. This pattern aligns with Jane Street's role as a designated market maker and authorized participant in Bitcoin ETFs like IBIT.