Bitcoin broke its long-standing “10 A.M. dump” pattern this week, surging over 4% past $68,000 and sparking a short squeeze. The shift in market behavior coincided with intensified speculation around trading firm Jane Street, whose social media accounts went blank, and a lawsuit filed by the Terraform Labs estate alleging the firm helped trigger the $40 billion Terra collapse. Analysts caution that one rally does not confirm a market bottom, noting true recovery requires sustained momentum above $74,000.
For months, crypto traders observed a predictable “10 A.M. dump” where Bitcoin faced heavy selling at the New York open. This week, the pattern broke as Bitcoin surged over 4% past $68,000, triggering a short squeeze. Attention swiftly turned to trading firm Jane Street, especially after its social media presence appeared blank, fueling speculation about its market activity.
The disappearance of the routine sell-off coincided with increased scrutiny from a lawsuit filed by Terraform Labs. That lawsuit alleges a former Terraform intern who joined Jane Street maintained a private chat where sensitive information was shared. It specifically claims that on May 7, 2022, Jane Street sold $85 million in UST minutes after a Terraform withdrawal, an action it argues helped trigger the collapse.
Jane Street has denied these allegations, calling them baseless. The firm’s social media activity has nonetheless significantly increased, partly linked to its $120 million stake in MicroStrategy. Analysts note that large market makers often trade delta-neutral, using such positions alongside ETFs.
Market analyst Nic Puckrin commented on the recent price action, stating, “We’ve seen one bounce in crypto prices and suddenly Crypto Twitter is convinced the bull market is back. This is a dangerous assumption.” He emphasized Bitcoin’s price isn’t driven by just one firm, adding that macro factors like geopolitical tensions and tighter global liquidity explain the current bear market.
Puckrin further noted, “The reality of Bitcoin market dynamics is much more nuanced. Regardless of whether market manipulation has taken place, Bitcoin’s price isn’t driven by just one firm, no matter how influential.” The Terraform lawsuit frames Jane Street not as another victim but as a potential beneficiary of the crash, though these claims remain unproven. For now, the “10 A.M. dump” remains an unconfirmed theory amidst market uncertainty.
