Glassnode co-founders reignite controversy over 'Jane Street-driven Bitcoin selling pressure'

JH Kim

Summary

It reported that the controversy in the digital asset community over Jane Street-driven Bitcoin selling pressure has come back into focus.
It said some are claiming that after the lawsuit was filed, the 10 a.m. Bitcoin plunge pattern disappeared and a rebound began.
However, Jane Street dismissed the allegations as baseless claims, and it reported that there is no official evidence or regulatory confirmation.

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Negentropic, an X (formerly Twitter) account run by Jan Happel and Yann Allemann, co-founders of on-chain analytics firm Glassnode, on the 25th (local time) again put the spotlight on a controversy spreading in the digital asset (crypto) community over alleged 'Jane Street-driven Bitcoin selling pressure.'

The hypothesis claims that major U.S. market-making firm Jane Street used algorithmic selling at 10 a.m. Eastern Time each day to push down the price of BTC.

The controversy resurfaced after Terraform Labs, which filed for bankruptcy the previous day, brought a lawsuit against Jane Street in connection with the collapse of TerraUSD (UST) and Luna (LUNA). Some in the community are also claiming that after the lawsuit was filed, the sharp-drop pattern that had appeared around that time disappeared and Bitcoin began to rebound.

Negentropic said, "Since the Jane Street-related lawsuit was made public, the Bitcoin plunge that had occurred at 10 a.m. every day has vanished as if by a miracle."

Jane Street, however, has dismissed the allegations as "baseless claims."

To date, there has been no official evidence or confirmation by regulators regarding the claim.