Bitcoin’s ’10 AM dumps’ stop as Jane Street gets sued: ‘That’s all it took!’

For months, crypto traders had grown used to the so-called “10 A.M. dump,” where Bitcoin [BTC] would face heavy selling right at the New York open.

Gains would vanish within minutes, and many began to see it as a predictable pattern.

But this week, the pattern broke. Instead of falling at 10 A.M., Bitcoin surged more than 4%, climbing past $68,000 and triggering a short squeeze. The sudden absence of selling quickly became a major talking point.

Attention turned to Jane Street, especially after traders noticed that Jane Street’s X account appeared blank, sparking talk of a possible social media purge.

The growing speculation around Jane Street

While some say the firm rarely posted anyway, the timing, alongside the disappearance of the “10 A.M. dump,” added to speculation.

In an email sent to AMBCrypto, Nic Puckrin, co-founder of Coin Bureau and lead market analyst, said, 

“We’ve seen one bounce in crypto prices and suddenly Crypto Twitter is convinced the bull market is back. This is a dangerous assumption.” 

Puckrin added, 

“The reality of Bitcoin market dynamics is much more nuanced. Regardless of whether market manipulation has taken place, Bitcoin’s price isn’t driven by just one firm, no matter how influential. It isn’t a memecoin.” 

He further highlighted that at the macro level, geopolitical tensions, tighter global liquidity, and AI-driven volatility in the tech sector, long correlated with Bitcoin, are enough to explain the current crypto bear market.

Whether Bitcoin has already formed a bottom can only be confirmed by data. One strong up day is not enough.

A true recovery would require sustained momentum, a reclaim of the $74,000 level, and steady gains over several weeks. Until then, everything else is just noise.

The Terraform lawsuit

But the lawsuit filed by the estate of Terraform Labs has intensified scrutiny.

It alleges that a former Terraform intern who later joined Jane Street maintained a private chat group where sensitive information may have been shared.

The complaint claims that on 7th of May, 2022, Terraform withdrew 150 million UST from Curve’s 3pool.

Within 10 minutes, a Jane Street-linked wallet sold $85 million in UST, an action the lawsuit argues helped trigger the $40 billion Terra collapse.

Though Jane Street has denied the allegations, calling them baseless, the detailed claims have unsettled the industry.

At the same time, the social activity around Jane Street has significantly increased. The rise is largely linked to its $120 million stake in MicroStrategy.

While this looks bullish, analysts say large market makers often trade delta-neutral, using positions like MicroStrategy and ETFs such as BlackRock

In fact, the suspicion has also spread beyond Jane Street. Binance recently dealt with rumors of a “10/10” crash after claims about a liquidation event circulated on X. 

However, in the end, the “10 A.M. dump” remains a compelling but unproven theory. 

What’s more?

Terra and FTX became symbols of retail losses. The case against Jane Street, however, frames the situation differently.

Instead of being another victim of the crash, the firm is accused of positioning itself to profit from it.

These are still allegations, and Jane Street has denied wrongdoing, but the narrative has shifted from simple market failure to questions about who may have benefited most from the collapse.

Final Summary

• Allegations tied to Terraform Labs suggest the 2022 collapse may involve more than flawed code and leverage, but the claims are still unproven.
• One strong rally does not confirm a bull market. Sustained price action above $74,000 is needed to signal structural recovery.