Did Jane Street Cause Another 10 a.m. Bitcoin Dump Today?
Speculation resurfaced that Jane Street caused a 10 a.m. Bitcoin drop, but data suggests liquidations and ETF outflows were the primary drivers.Summary
Claims that Wall Street firm Jane Street triggers a daily 10 a.m. Bitcoin sell-off resurfaced following a sharp drop on December 12. This narrative suggests institutional traders and ETF market makers like Jane Street push prices down around the US equity market open (9:30-10:00 a.m. ET) to trigger liquidations. However, analysis of futures data showed no abnormal sell-off exactly at 10:00 a.m. ET; the sharp drop occurred later. Bitcoin futures open interest remained stable, contradicting the idea of aggressive directional selling by a major firm. Instead, the move is better explained by over $430 million in crypto liquidations across the market, predominantly long positions, accelerated by a $77 million outflow from US spot Bitcoin ETFs the previous day. The selling pressure was distributed across major exchanges, lacking the footprint of a single coordinated manipulation, suggesting the recurring narrative is fueled by structural market factors coinciding with leverage unwinds.
(Source：BeInCrypto)