For months, crypto traders had become accustomed to the so-called ’10 AM dump’, where Bitcoin [BTC] would face heavy selling at the New York Open.
The gains would disappear within minutes, and many began to see it as a predictable pattern.
But this week the pattern broke. Instead of falling at 10 a.m., Bitcoin rose more than 4%, rising above $68,000 and causing a short squeeze. The sudden absence of sales quickly became a major talking point.
Attention focused mainly on Jane Street after traders noticed that Jane Street’s X account appeared empty, sparking talk of a possible social media purge.
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The growing speculation surrounding Jane Street
While some say the company rarely posted anything anyway, the timing, in addition to the disappearance of the “10 AM dump,” added to the speculation.
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In an email to AMBCrypto, Nic Puckrin, Coin Bureau co-founder and chief market analyst, said:
“We’ve seen a jump in crypto prices and suddenly Crypto Twitter is convinced the bull market is back. This is a dangerous assumption.”
Puckrin added,
“The reality of Bitcoin market dynamics is much more nuanced. Regardless of whether market manipulation has occurred, Bitcoin’s price is not determined by just one company, no matter how influential. It is not a memecoin.”
He further emphasized that at a macro level, geopolitical tensions, tightening global liquidity and AI-driven volatility in the technology sector, which has long been correlated with Bitcoin, are enough to explain the current crypto bear market.
Whether Bitcoin has already formed a bottom can only be confirmed by data. One strong day is not enough.
A real recovery would require continued momentum, a recovery from the $74,000 level and steady gains for several weeks. Until then, everything else is just noise.
The Terraform Lawsuit
But the lawsuit submitted the legacy of Terraform Labs has intensified research.
It is alleged that a former Terraform intern who later joined Jane Street had a private chat group where sensitive information may have been shared.
The complaint alleges that Terraform withdrew UST150 million from Curve’s 3pool on May 7, 2022.
Within 10 minutes, a wallet linked to Jane Street sold $85 million in UST, a move that the lawsuit alleges contributed to the $40 billion collapse of Terra.
Although Jane Street has denied the allegations, calling them baseless, the detailed claims have unsettled the industry.
At the same time, social activity around Jane Street has increased significantly increased. The increase is largely related to the $120 million stake in MicroStrategy.
While this seems bullish, analysts say big market makers often trade delta neutral, using positions like MicroStrategy and ETFs like BlackRock.
In fact, suspicion has spread beyond Jane Street. Binance has recently faced rumors of a “10/10” crash after rumors of a liquidation event circulated on X.
Ultimately, however, the ’10 AM dump’ remains a compelling but unproven theory.
What’s more?
Terra and FTX became symbols of retail losses. However, the case against Jane Street frames the situation differently.
Rather than being yet another victim of the crash, the company has been accused of positioning itself to benefit from it.
These are still allegations, and Jane Street has denied wrongdoing, but the narrative has shifted from simple market failure to questions about who benefited most from the collapse.
Final summary
- Allegations linked to Terraform Labs suggest that the 2022 collapse may involve more than flawed code and leverage, but the claims remain unproven.
- One strong rally does not confirm a bull market. Sustained price action above $74,000 is needed to signal structural recovery.