TLDR
- Bitcoin experienced a ~7% surge amid rumors that Jane Street discontinued its alleged daily “10 a.m. dump” trading strategy following legal action
- On February 23, Terraform Labs’ bankruptcy administrator initiated an 83-page legal complaint against Jane Street, claiming insider trading related to the 2022 TerraUSD crash
- Bitcoin’s price exceeded $68,000, contributing over $170 billion to the overall cryptocurrency market capitalization
- Data reveals Bitcoin declined during the opening hour of U.S. market trading in more than 60% of trading sessions since early November
- Market observers indicate Bitcoin must maintain levels above $64,000 and breakthrough $66,535 resistance to continue upward momentum
Bitcoin delivered one of 2025’s most impressive daily performances on Wednesday, climbing nearly 7% to breach the $68,000 threshold. This surge contributed over $170 billion to the aggregate cryptocurrency market capitalization, elevating it to $2.4 trillion.
The price movement coincided with widespread online discussion regarding trading firm Jane Street. Cryptocurrency traders across X (formerly Twitter) and Reddit had previously identified a recurring pattern where Bitcoin’s overnight price increases would evaporate minutes after U.S. equity markets opened at approximately 10 a.m. Eastern Time.
Data from early November showed Bitcoin experiencing price declines during the initial trading hour in over 60% of U.S. market sessions, frequently losing as much as 3% during that timeframe. A notable example occurred on December 4, when Bitcoin dropped 2.1% within just 18 minutes while the S&P 500 remained relatively stable.
Market participants theorized that Jane Street operated an automated trading algorithm programmed to sell Bitcoin at 10 a.m. each trading day, effectively capping rallies and enabling the firm to repurchase at reduced price levels.
Researcher “Bark” stated on X: “Jane Street was running an algorithm that dumped Bitcoin every single morning at 10am. Every day. For months. Crashing the price. Liquidating retail. Buying back lower. Rinse and repeat.”
Investor Mike Alfred intensified the narrative by asserting he had communicated with a Jane Street insider who confirmed that company leadership ordered the “immediate cessation” of this trading approach. Alfred claimed the “10 a.m. algo” had been terminated. CCN attempted to contact both Alfred and Jane Street for confirmation but did not receive responses. These assertions remain unconfirmed.
Jane Street has rejected all accusations, characterizing them as “baseless.”
The Lawsuit Behind the Speculation
The increased attention stems from legal proceedings initiated on February 23 by Terraform Labs’ bankruptcy administrator. The comprehensive 83-page filing accuses Jane Street, co-founder Robert Granieri, and two additional employees of insider trading and market manipulation preceding the 2022 TerraUSD implosion, which destroyed approximately $40 billion in market value.
The lawsuit contends that confidential, privileged information from Terraform sources was provided to Jane Street to enable front-running of trades.
Bloomberg ETF analyst Eric Balchunas suggested that if persistent selling pressure had indeed ceased, Bitcoin might experience a durable recovery.
Technical Levels to Watch
Market analysts observed Bitcoin’s Relative Strength Index (RSI) had recently approached 30, an oversold threshold typically linked with short-term price bounces.
Information from CoinMarketCap indicated a 95% correlation between Bitcoin and the S&P 500 during the 24-hour timeframe, implying broader market conditions influenced the move. Equity markets advanced that day as artificial intelligence-related anxieties subsided before Nvidia’s earnings announcement.
Bitcoin reached an intraday peak of $69,819 before retreating slightly. Technical analysts emphasize it needs to remain above $64,000 and overcome resistance at $66,535 to preserve upward momentum. Failure to do so might trigger a retest of support around $60,074.
Bitcoin had dipped below $63,000 earlier in the trading week and continues trading nearly 50% below its October all-time highs.
