Bitcoin attempted to reclaim $65,000 as support amid market rumors of institutional selling pressure from quantitative trading firm Jane Street. The cryptocurrency bounced 2.5% as a social media theory alleged the firm conducted coordinated daily algorithmic selling. Jane Street has rebutted the claims as “baseless,” while traders noted “razor thin” order books contributed to heightened price volatility and a significant short squeeze.
Bitcoin sought to reclaim $65,000 as support into Wednesday’s Wall Street open. The price rebounded to $66,300 on Bitstamp before consolidating, with daily gains exceeding 2%.
A circulating theory alleged secretive quantitative investment firm Jane Street was behind coordinated algorithmic Bitcoin selling at 10 a.m. Eastern time daily. This activity was cited as a main impetus for months of BTC price downside beginning in October 2025.
Amid ongoing legal action by defunct crypto company Terraform Labs, Jane Street may have been forced to suspend its trading strategy. The Terraform Labs complaint makes specific reference to “market manipulation” that impacted crypto throughout 2022.
Jane Street stated the accusations were “baseless, opportunistic claims.” The 10 a.m. argument failed to convince many, with one commentator suggesting the theory was too simplistic for a top quant firm.
Traders remained cautious on the latest price move. One analyst noted on X that Bitcoin is facing major resistance at $66,000 from both the local range lows and the four-hour trend.
Keith Alan, cofounder of Material Indicators, said a “razor thin order book” on exchanges contributed to the price rebound. He told X followers that overhead sell liquidity had been pulled ahead of a major political address.
The 24-hour crypto liquidations totaled $333 million, with shorts accounting for $213 million. Data from CoinGlass tracked this liquidation history.
