The Conclude of the 10 AM Bitcoin Dip? Jane Street, Terra, and a $200 Billion Rally
For months, a peculiar pattern plagued Bitcoin traders: a consistent price drop every day at 10:00 AM Eastern Time, coinciding with the opening of US stock markets. This daily “dump” triggered liquidations and stifled rallies, leading to widespread speculation, and accusations. Now, a legal complaint against trading giant Jane Street appears to have abruptly halted the pattern, sparking a massive $200 billion surge in the crypto market.
The Mysterious 10 AM Dip
Traders observed a systematic selling pressure on Bitcoin each day at 10 AM EST. BlockNews summarized the frustration, noting the dip triggered liquidations and capped potential price increases. The finger quickly pointed at Jane Street, a high-frequency trading firm managing $650 billion, due to its central role in ETF and market-making activities.
Terraform Labs and the Allegations Against Jane Street
The shift came on February 23, 2026, with a lawsuit filed by Todd Snyder, the administrator liquidating Terraform Labs. The complaint accuses Jane Street of insider trading related to the collapse of the Terra stablecoin in May 2022. Specifically, it alleges that a wallet linked to Jane Street withdrew 85 million UST just ten minutes after Terraform initiated a withdrawal of 150 million UST. The timing and connection to a former Terra employee now working at Jane Street have fueled the accusations.
Jane Street vehemently denies the allegations, calling the lawsuit “opportunistic” and shifting blame to Do Kwon, the convicted founder of Terra.
A $200 Billion Market Rebound
The timing of the lawsuit’s announcement coincided with a dramatic change in Bitcoin’s price action. On February 25th, the anticipated 10 AM sell-off failed to materialize. Instead, Bitcoin surged, briefly reaching $70,000, while Ethereum and Solana saw gains of 13% and 15% respectively. The overall crypto market capitalization increased by $200 billion in just two days.
Bloomberg analyst Eric Balchunas captured the sentiment, stating, “The boogeyman is gone.” Another analyst, Bull Theory, noted that since the lawsuit, the 10 AM manipulation appears to have ceased, with Bitcoin adding $120 billion in value.
Key Numbers and Timeline
- 85 million: The amount of UST withdrawn by a Jane Street-linked wallet in 2022.
- February 23, 2026: The date the lawsuit against Jane Street was filed.
- $200 billion: The market capitalization added to the crypto market since the 10 AM dip stopped.
- 15 years: The prison sentence for Do Kwon, founder of Terra.
- $68,383: The price of Bitcoin at the time of reporting.
Is it Manipulation or Coincidence?
Whether the cessation of the 10 AM dip is a direct result of the lawsuit or a mere coincidence remains unclear. However, the timing has led many in the crypto community to believe that manipulation was indeed occurring. Recent inflows of $258 million into US Bitcoin ETFs too contributed to the positive price movement, demonstrating that organic demand can also drive significant gains.
Frequently Asked Questions
Is Jane Street facing criminal charges?
Currently, Jane Street is facing a civil lawsuit alleging insider trading. Whether criminal charges will follow is unknown.
What was the impact of the Terra collapse?
The collapse of Terra (UST) in May 2022 caused significant turmoil in the crypto market, wiping out billions of dollars in value and shaking investor confidence.
Could the 10 AM dip have been caused by something other than manipulation?
While manipulation is suspected, the 10 AM timeframe coincides with high liquidity and the convergence of ETF flows, futures settlements, and institutional rebalancing, which could naturally create price volatility.
What does this mean for the future of Bitcoin?
The end of the 10 AM dip, if confirmed as manipulation, could signal a more stable and transparent market for Bitcoin. Continued positive inflows into ETFs and growing institutional adoption suggest a potentially bullish outlook.
Pro Tip: Always conduct thorough research and understand the risks involved before investing in cryptocurrencies. Diversification is key to mitigating potential losses.
Did you know? The Bitcoin price is currently lower than it was when President Trump was elected in 2024, raising concerns about a potential “crypto winter.”
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