Bitcoin falls to $65,000 as experts reject conspiracy claims against Jane Street

• Bitcoin fell to $65,000 amid viral claims accusing Jane Street of orchestrating a '10 AM dump' through ETF-related selling activity.
• Analysts, including Matt Hougan and Alex Krüger, dismissed manipulation claims, citing normal arbitrage mechanics and cyclical market selling.
• K33 Research's data showed no market manipulation, attributing BTC's volatility to macro pressure and market structure.

Bitcoin (BTC) fell toward $65,000 on Friday as several market experts challenged claims that Jane Street suppressed prices.

Bitcoin slides to $65K as experts reject Jane Street price suppression claims

Bitcoin fell to $65,000 on Friday as renewed FUD (fear, uncertainty and doubt) spread across the market. The latest wave of speculation centers on Jane Street, the high-frequency trading firm accused of suppressing Bitcoin's price through its role as an authorized participant (AP) in spot Bitcoin exchange-traded funds (ETFs).

The claims gained traction after a lawsuit linked the firm to the 2022 collapse of Terraform Labs. Viral posts alleged that Jane Street has been conducting systematic "10 AM dumps" in US hours, suggesting the firm sells Bitcoin daily at the US market open to hedge ETF exposure and push prices lower.

However, several market analysts and industry experts have rejected the theory, arguing that it reflects a misunderstanding of how ETF arbitrage and market structure work.

Bitwise CIO Matt Hougan described the accusations in a Thursday X post as another example of recurring crypto conspiracy narratives. He noted similar claims in previously targeted firms such as Binance and Wintermute.

Hougan attributed Bitcoin's weakness to investors selling spot holdings, unwinding leveraged positions, and covered calls writing. He also pointed to broader cyclical pressures and renewed concerns around emerging technologies such as quantum computing.

"The real reason Bitcoin is down is that a bunch of people who were long Bitcoin sold their Bitcoin exposure," he wrote. 

He added that much of the heavy selling may already be over, suggesting the market could be forming a bottom.

"This is a classic crypto winter and there will be a classic crypto spring. People want someone to blame— but the reality is far more boring than that," he added.

Economist and trader Alex Krüger also rejected the manipulation claims, calling them a flawed conspiracy theory. Responding to a post from ProCap CIO Jeff Park, Krüger explained that whether an authorized participant or a basis trader buys spot Bitcoin to close an arbitrage gap, the net effect on demand is the same.

APs and basis traders help align ETF prices, futures contracts, and spot markets, serving as key components of price discovery rather than price suppression, noted Krüger.

Further analysis by K33's Head of Research, Vetle Lunde, examined the viral 10 AM claim more closely. Reviewing 606,513 minutes of Bitcoin return data between January 1, 2025, and February 26, 2026, Lunde noted that the average return at 10:00 AM was 0.207 basis points. That ranked it as the 359th strongest minute of the trading day, placing it within the top 25% of all minutes measured.

Even during a narrower window from November 2025 to February 2026, where 10:00 AM showed slightly weaker average returns of negative 1.41 basis points, Lunde emphasized that such moves fall within normal volatility patterns. He noted that US macroeconomic data releases and the opening of the stock market frequently drive short-term price swings during that time.

The renewed focus on Jane Street follows a lawsuit filed by the court-appointed administrator overseeing the wind-down of Terraform Labs. The complaint alleges that Jane Street used insider information to front-run trades during the collapse of the Terra/Luna ecosystem in May 2022. 

Prosecutors claim the firm avoided more than $200 million in potential losses, while contributing to a broader collapse that erased roughly $40 billion of the Terra ecosystem.