Over the past few months, traders have observed a strange pattern: almost every day around 10:00 AM Eastern Time (ET), right after the opening of the US stock market, Bitcoin experienced a sharp drop of 2–5% within a few minutes.
These movements:
• wiped out overnight profits,
• triggered mass liquidations ($300–400 million+),
• after which the price slowly recovered.
The trading community has dubbed this phenomenon the '10AM dump'.
Why exactly 10:00?
10:00 ET is:
• opening of primary liquidity in the US stock market
• active ETF hedging
• crossing of global risk flows
• moments when order books can be thinner
If a large player initiates algorithmic selling in such a window — the effect is amplified.
In the spotlight — Jane Street
In social networks and analytical threads, there have been suggestions that one of the largest HFT companies may have used the following model:
1. Accumulation of spot BTC
2. Opening large short positions in derivatives
3. Aggressive algorithmic selling during a vulnerable liquidity window
4. Long liquidations → panic → acceleration of the fall
5. Closing shorts with profit
6. Buy the dip
The scenario repeats.
Official evidence has not been publicly presented, but something else is interesting.
What has changed?
After the news of the lawsuit against Jane Street (in federal court in Manhattan), the pattern disappeared sharply.
In two days:
• Bitcoin rose by ~7–10%
• Market capitalization added over $100 billion
• The weekly candle turned green after a series of red ones
Coincidence? Maybe.
But the market noticed.
Important conclusions for the trader
1. Time matters. Liquidity ≠ safety.
2. ETF hedging affects spot and derivatives.
3. Liquidation cascades — a tool, not randomness.
4. Large players operate through algorithms, not emotions.
The question remains open
Was this a deliberate price suppression mechanism?
Or is it simply market structure + coincidence of factors?
The cryptocurrency market is maturing.
And that means — understanding mechanics becomes more important than emotions.
