Why does Bitcoin always plummet at 10 AM when the US market opens? This tweet talks about an interesting phenomenon: since early November, Bitcoin has been decreasing for most of the time after the US stock market opens. The same situation occurred in the second and third quarters as well. Last night, Bitcoin erased 16 hours of gains in just 20 minutes after the US market opened.
Previously, financial blogger @zerohedge has pointed this out multiple times, believing that Jane Street is the most likely entity to implement this behavior. From the charts, this pattern is too consistent to ignore: a complete crash within the first hour after opening, followed by a slow recovery. This is a typical high-frequency trading execution pattern.
This aligns well with their requirements:
• Jane Street is one of the largest high-frequency trading firms in the world.
• They have the speed and liquidity to affect the market within minutes.
In fact, Jane Street is the largest market maker globally, spanning across multiple markets including US stocks and cryptocurrencies. Their reported positions to the SEC reach as high as hundreds of billions of dollars, and of course, this is not even the managed scale. Jane Street is also the market maker for several of the largest Bitcoin ETFs.
This behavior seems quite simple:
1. Sell Bitcoin at the open.
2. Push the price towards a liquid market.
3. Re-enter at lower levels.
4. Repeat daily.
By doing so, they have accumulated billions $BTC .
As of now, Jane Street holds $2.5 billion worth of BlackRock IBIT ETF, which is their fifth largest position.
It looks very manipulative, and with macro headwinds, it has become even more adept. When will the big players finish accumulating? 🧐#比特币VS代币化黄金 $BTC
