BTC Surges Past $66K Amid Speculation About Jane Street Trading Algorithm
A developing theory in crypto markets suggests that systematic Bitcoin sales from Jane Street may have influenced price action, though this selling may have recently ceased.
As Wednesday's Wall Street trading session commenced, Bitcoin (BTC) mounted an effort to establish $65,000 as a support level while speculation mounted regarding institutional selling pressure from the United States.
Key points:
- A 2.5% bounce in Bitcoin's price coincides with speculation regarding systematic selling from Wall Street firm Jane Street.
- Accusations of crypto market manipulation during 2022's bear market are rejected by Jane Street.
- Heightened BTC price volatility driven by "razor thin" liquidity in order books.
Jane Street "10am price slam" theory sparks Bitcoin community debate
According to TradingView data, the BTC price recovery pushed BTC/USD to reach $66,300 on the Bitstamp exchange before entering a consolidation phase.
At the time of writing, daily gains stood above 2%, as participants in cryptocurrency markets showed growing interest in theories about intentional Bitcoin price manipulation.
The speculation making rounds across social media platforms centered on Jane Street, a secretive quantitative trading firm currently facing litigation from the now-defunct cryptocurrency company Terraform Labs.
According to the theory, systematic algorithmic sales of Bitcoin executed daily at 10am Eastern time served as the primary driver behind several months of downward BTC price pressure that commenced in October 2025.
Due to the ongoing litigation, Jane Street may have been compelled to halt this trading approach, potentially allowing the market to experience upward price adjustment.
Within the Terraform Labs lawsuit, specific allegations of "market manipulation" are referenced, which purportedly affected cryptocurrency markets throughout 2022, the year Bitcoin established its most recent bear market low of $15,600 during the fourth quarter.
In response to inquiries from Cointelegraph, Jane Street characterized the allegations as "baseless, opportunistic claims."
The 10am selling theory, however, did not gain universal acceptance. Among the skeptics was crypto YouTuber Wise Advice, who argued that the explanation was overly simplistic to represent market reality.
Liquidity concerns amid BTC price movement
Regarding the most recent Bitcoin price action, market traders maintained a cautious stance.
"$BTC is facing major resistance at $66k - from both the local range lows and the 4h trend," trader Jelle wrote in his latest analysis on X.
"Flipping that could spark short-term relief, but until that happens, the trend is clear. Don't fight it."
According to Keith Alan, cofounder of trading resource Material Indicators, the price recovery was partially driven by a "razor thin order book" present on cryptocurrency exchanges.
In communication with his X followers, he explained that sell liquidity at higher price levels had been withdrawn ahead of US President Donald Trump's State of the Union address.
According to data from CoinGlass, total liquidations across cryptocurrency markets reached $333 million at the time of writing, with short positions representing $213 million of that total.
