Why does Bitcoin always plunge at 10 AM when the US stock market opens?

This tweet mentions an interesting pattern: from early November until now, Bitcoin has mostly dropped after the US stock market opens—similar situations occurred in Q2 and Q3 as well. Last night was even more exaggerated, as it wiped out the gains of the previous 16 hours just 20 minutes after the US stock market opened.

Financial blog @zerohedge has pointed out multiple times that the most likely culprit is Jane Street.

From the chart, the pattern is very consistent: a quick sell-off within the first hour of opening, followed by a gradual recovery—typical of high-frequency trading style.

The reasons are also easy to understand:

Jane Street is a top global high-frequency trading team;

They operate across US stocks and the cryptocurrency market, with sufficient speed and liquidity;

The SEC disclosed their holdings at a staggering $700-800 billion;

They are also the main market makers for several Bitcoin ETFs.

What they might be doing is actually quite simple:

Sell BTC at the moment the US stock market opens; push the price down to a deeper liquidity position; then buy it back at a lower price; and repeat this daily.

By doing this, they can continuously collect cheap chips.

Currently, Jane Street holds approximately $2.5 billion worth of IBIT, which is their fifth largest position.