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Did Jane Street Cause Another 10 a.m. Bitcoin Dump Today?
Claims that Wall Street trading firm Jane Street causes a daily 10 a.m. Bitcoin "dump" have resurfaced on Dec. 12 after BTC experienced an aggressive intraday drop in price. Social media speculation pointed to institutional traders and ETF market makers, once again, as potentially being responsible for the sell-off.
However, a more thorough examination of available data indicates that the actual reasons for the price drop may be more complicated than a simple trade conducted at 10 a.m. ET.
What Does the “Jane Street 10 a.m.?” Narrative Mean?
The theory proposes that Bitcoin frequently has a significant price decline between approximately 9:30 to 10:00 a.m. ET due to a major market maker, such as Jane Street, who is also an authorized market maker for US spot ETFs and thus is trading aggressively to push prices down in order to trigger liquidations and buy the Bitcoin back at a lower price point. However, to date, regulators, exchanges, or other data sources have never confirmed that these activities are coordinated.
The Price Pattern for Bitcoin Futures Does Not Support the Theory of An Aggressive 10 a.m. Dump on Bitcoin.
Bitcoin had been experiencing sideways price action for the entire day through the time of the US market open and remained in a very tight price range of about $92,000-$93,000. Although there was a significant price drop moving forward from the open, there is no evidence of a significant or abnormal price drop occurring at exactly 10 a.m. ET.
