Crypto analyst Bull Theory has explained why the The Bitcoin price has crashed recently. The analyst pointed out that Wall Street traders were responsible for the price drops, indicating that these trading desks were manipulating the market for their own benefit.
Analyst Explains Why Bitcoin Price Is Crashing
In one X messageBull Theory blamed Jane Street for the constant crash of the Bitcoin price at 10 a.m. ET, when the US market opens. The analyst pointed out that BTC erased 16 hours of gains in just 20 minutes after the US market opened. This has been happening especially since the beginning of November, when the flagship crypto fell below $100,000. Meanwhile, a similar price action also took place in the second and third quarters of this year.
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Bull Theory noted that another analyst, Zerohedge, has claimed that Jane Street is most likely the entity responsible for this Bitcoin price crash. The analyst said the chart shows a pattern too consistent to ignore, with a clean break within an hour of the market opening, followed by a slow recovery. He added that this is a classic high-frequency performance and that it fits Jane Street’s profile.
Bull Theory stated that Jane Street is one of the largest high frequency trading companies in the world and that they have the speed and liquidity to keep the markets moving for a few minutes. The analyst claimed that their behavior is simple: dump BTC on the open market, push the Bitcoin price into liquidity pockets, and then re-enter at a lower price.
By doing so, the analyst claimed that Jane Street has amassed billions in BTC. The trading company is said to own $2.5 billion worth of shares Bitcoin ETF from BlackRockwhich is the fifth largest position. Bull Theory added that this means that most of the dump in the Bitcoin price is not due to macro weakness, but to manipulation by this entity. He expects BTC to continue its upward momentum once these major players finish buying.
Bitcoin is at risk of a decline after FOMC
Crypto analyst Ali Martínez indicated that the Bitcoin price was then at risk of falling significantly today’s FOMC meeting. He pointed out that BTC has consistently responded negatively to FOMC meetings, with six of the seven meetings this year resulting in corrections for the flagship crypto.
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The Bitcoin price had risen to $94,500 yesterday, ahead of a third rate cut this year by the Fed. According to CME FedWatch, there is currently a 90% chance that the Fed will cut rates by 25 basis points (bps). A CryptoQuant Report noted that these rate cuts have proven to be a “sell the news” event the two times the Fed has cut rates this year, with the likelihood of this price action happening again.
At the time of writing, the Bitcoin price is trading around $92,600, down in the past 24 hours, according to facts from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com