Why did Bitcoin rise today? Jane Street sued to end the "10 a.m. sell-off"

Bitcoin rebounded sharply on Wednesday, briefly surpassing $70,000. This rally is the strongest single-day movement in weeks, ending the downward trend since Bitcoin’s high above $120,000 in October. Analysts and market observers generally link this upward move to the lawsuit against Jane Street by Terraform Labs’ bankruptcy administrator.

Crypto Market Rebounds Across the Board: Key Cryptocurrency Gains on Wednesday

According to CoinGecko data, the crypto market strengthened across the board on Wednesday, with major coins recording double-digit gains.

Major Cryptocurrency Gains on Wednesday

Bitcoin (BTC): Briefly broke through $70,000, ending its continuous decline since October

Ethereum (ETH): Up over 13% in a single day

Solana (SOL): Surged over 15% in one day

Total Cryptocurrency Market Cap: Increased by over $170 billion in a single day, approaching $2.5 trillion

This rally marks Bitcoin’s first strong rebound since falling below $65,000 after its October peak and is the most notable market sentiment shift in months.

Jane Street Lawsuit and “10 AM Sell-Off”: Market Interpretations and Controversies

The reason for Bitcoin’s rise today has sparked intense discussion within the crypto community. Some market commentators on X (formerly Twitter) pointed out that after Jane Street was sued, the long-standing pattern of market sell-offs at 10 a.m. Eastern Time seemed to have stopped on Wednesday.

Crypto analyst Bark wrote on X: “After they were sued, this behavior stopped. The daily 10 a.m. sell-off disappeared. Now, Bitcoin is having its best day in months.” On-chain analyst Nonzee expressed a similar view: “For months, 10 a.m. meant one thing: Jane Street selling. Today? Bitcoin is surging instead.”

However, there is no public evidence that Jane Street has systematically sold Bitcoin at fixed times; these claims are market speculation. Bloomberg senior ETF analyst Eric Balchunas cautiously stated on X: “Is removing selling pressure enough to sustain a rebound? I think we’ll find out soon.”

This lawsuit was filed by Terraform Labs’ bankruptcy administrator, accusing Jane Street of using non-public information from inside Terraform to trade related assets ahead of the 2022 Terra-Luna ecosystem collapse. Jane Street denies all allegations, and the case is still in legal proceedings with no court ruling yet.

Technical Analysis: $64,000 Support Holds, $71,000 as Key Validation Point

From a technical perspective, Bitcoin has effectively rebounded around the $64,000 level, which now acts as a key support/resistance zone. If Bitcoin can maintain momentum above the downtrend line, the short-term upside target is $71,000, with further targets at $80,000 and $90,000 upon breakout.

If the rebound momentum wanes, the price could retest $64,000 again. If this support weakens after multiple tests, the next key macro support is around $60,000.

Notably, mining equipment manufacturer Canaan Inc. invested $39.75 million in stock to acquire a 49% stake in Cipher Mining’s three Texas mining farms, immediately adding 4.4 EH/s of hash rate and locking in 120 MW of power capacity. Some market participants interpret this move as a sign of confidence in Bitcoin’s long-term prospects, contrasting with recent trends of miners reducing holdings to manage liquidity.

Frequently Asked Questions

Why did Bitcoin rise today?

The main market narrative for Bitcoin’s rebound on Wednesday is that the lawsuit against Jane Street may have alleviated the previous structural sell pressure. However, there is no public evidence confirming that Jane Street systematically sold Bitcoin; this remains market speculation. Technically, Bitcoin’s support at $64,000 held firm, leading to a clear shift in market sentiment.

What impact does the Jane Street lawsuit have on the crypto market?

The lawsuit filed by Terraform Labs’ bankruptcy administrator against Jane Street for alleged insider trading is seen by some as indirectly easing long-term structural sell pressure. However, this causal link has not been confirmed, and the lawsuit is ongoing. Jane Street denies all allegations.

What are the key technical levels for Bitcoin moving forward?

The current key support is at $64,000; if broken, the next support is around the macro bottom at $60,000. Resistance levels are at $71,000, $80,000, and $90,000. Whether Bitcoin can break through $71,000 will be a crucial indicator of whether this rebound can sustain.