Jane Street dumping allegations have reached new heights — but do they carry any weight? | Source: CCN
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Key Takeaways
Bitcoin rebounds amid Jane Street speculation.
The speculation comes as the firm contests a lawsuit tied to the 2022 TerraUSD collapse.
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.
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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.
Mike Alfred’s unverified claims added fuel to the narrative | Source: X (MikeAlfred)
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.
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.
The window follows the 9:30 a.m. U.S. equity open, when trading volumes deepen, and cross-asset desks adjust positions.
Several U.S. economic indicators, including consumer confidence data, are also released at 10 a.m., often prompting rapid repositioning across asset classes.
While Bitcoin trades around the clock, liquidity shifts between Asia, Europe and the U.S.
As U.S. participation increases, the dynamics of its order books can exaggerate routine adjustments.
Macro Drivers and Technical Levels
Broader market dynamics also appeared to support Bitcoin’s rebound.
Data showed a 95% correlation between Bitcoin and the S&P 500 over the past 24 hours, suggesting the move was largely macro-driven, according to CoinMarketCap.
Bitcoin jumped around 3% over the past 24 hours, while total crypto market capitalization rose about 2.7% over the same period.
Bitcoin rose approximately 3% over the past 24 hours | Source: CoinMarketCap
Analysts said it needs to hold above $64,000 and break through resistance at its seven-day simple moving average near $66,535 to sustain upward momentum.
A failure to reclaim that level could leave it vulnerable to a retest of support around $60,074.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
