🚨Why can't Bitcoin break above $200,000? Why does Bitcoin always plummet when the U.S. stock market opens at 10 AM?
Just 20 minutes after the U.S. stock market opened today, Bitcoin erased all its gains from the past 16 hours.
Since early November, Bitcoin has mostly declined after the U.S. stock market opens, and similar situations occurred in the second and third quarters of this year.
Some have pointed out this phenomenon multiple times, believing that Jane Street Capital is most likely the behind-the-scenes operator.
As seen in the chart, this pattern is extremely regular and cannot be ignored: a significant drop within the first hour after opening, followed by a slow recovery, is typical of high-frequency trading operations.
This completely aligns with the characteristics of the institution:
- Jane Street Capital is one of the largest high-frequency trading firms in the world
- It has sufficient speed and liquidity to impact the market within minutes
The operational process is very simple:
1. Sell Bitcoin at the opening
2. Drive the price down to the liquidity range
3. Buy back at a lower price
4. Repeat daily
Through this method, they have accumulated billions of dollars in Bitcoin.
Currently, Jane Street Capital holds a $2.5 billion stake in BlackRock's IBIT ETF, making it their fifth-largest holding.
This means that most of Bitcoin's decline is not due to macro weakness but is caused by manipulation from a large institution.
Once these large institutions finish accumulating, Bitcoin will continue its upward momentum.
