Thanks for information about #JaneStreet10AMSellOff 🤔

One of the most talked-about topics in the crypto market in recent months, #JaneStreet10AMSellOff, erupted with the allegation that Wall Street's giant trading firm, Jane Street, systematically suppressed the Bitcoin price. The theory suggests that since November 2025, almost every trading day at the opening of the US market , Bitcoin has experienced sudden selling pressure of around 2-3%. This pattern, dubbed the "10 AM dump," allegedly allowed retail investors to liquidate their long positions, enabling Jane Street to buy at a lower price. Source and Spread of the Allegations
Many traders and on-chain analysts (such as Nonzee, Bull Theory, and Justin Bechler) argued that Jane Street abused its role as an authorized participant (AP) and market maker in spot Bitcoin ETFs like BlackRock IBIT. According to the theory: The firm was selling spot BTC using an ETF creation/redemption mechanism, driving down the price, triggering liquidation cascades, and then buying back at the discounted levels.
This pattern limited rallies for months, kept Bitcoin below $150,000, and wiped out many leveraged positions.
🔹The Terraform Labs Lawsuit and the Disappearance of the "Dump"
In late February 2025, Terraform Labs' insider trading lawsuit against Jane Street (related to the LUNA/UST crash) dropped like a bomb. Following the lawsuit:
The "10 AM sell-off" pattern suddenly disappeared between February 25-27, 2026.
Bitcoin launched a strong rally in its place: Daily gains of up to 7%, the weekly candle turned green (first green after 5 red candles).
BTC jumped from $62,000 to over $68,000, increasing its total market capitalization by ~$200 billion.
Major altcoins like ETH and Solana also showed a similar recovery.
Some commentators attributed this to "the halting of Jane Street's algorithm": posts like "Post-lawsuit dump stopped, BTC rip higher" went viral. Jane Street deleting all posts on her X account also fueled speculation.
🔸However, the claim remained largely controversial:
Names like Bitwise CIO Matt Hougan, Dragonfly Capital, and Sunny Decree rejected it as "fake news."
Data analysis: It was noted that BTC actually remained green between 10:00 and 10:30, indicating no consistent daily dump pattern.
ETF mechanism experts: It is impossible for a single firm to manipulate BTC for an extended period; the market is very liquid and competitive. Sources like Fortune and CoinDesk have described the theory as a "ridiculous conspiracy," while sources close to Jane Street have denied the allegations.
🔸Currently, the pattern appears to have completely disappeared, but it's unclear whether this is due to the lawsuit or market dynamics. With Bitcoin consolidating in the ~$64,000-$68,000 range, traders say they've gained "breathing room." If this relief is permanent, short-term bullish momentum could follow – but leverage cascades and general bearish pressure still carry risks. The crypto market is witnessing another "narrative-driven" rally: Is it real manipulation, or a self-fulfilling prophecy created by the community? Time will tell.