Analyst calls Jane Street 10AM dump narrative 'wrong'

Core Viewpoint - Terraform Labs' bankruptcy administrator has filed a lawsuit against Jane Street Capital, alleging insider trading that contributed to the collapse of the crypto firm [1][2]. Group 1: Terraform Labs and Bankruptcy - Terraform Labs, founded by Do Kwon in 2018, was a leading crypto company until its twin cryptocurrencies, TerraUSD and LUNA, collapsed in 2022, resulting in estimated investor losses of $40 billion [1]. - The firm filed for Chapter 11 bankruptcy in January 2024, and Do Kwon was sentenced to 15 years in prison [2]. Group 2: Impact on Bitcoin Trading - The crypto community has observed a pattern of Bitcoin facing heavy selling pressure at 10 AM EST, referred to as the "10 AM dump," which many attribute to Jane Street's trading activities [2][3]. - Following the lawsuit against Jane Street, Bitcoin's price surged at the start of U.S. trading hours, breaking the previously established "10 AM dump" pattern [3]. Group 3: Allegations Against Jane Street - Crypto influencer Justin Bechler claims that if it weren't for Jane Street's trading practices, Bitcoin could be valued at least $150,000 currently [4]. - Bechler alleges that Jane Street held approximately $790 million in BlackRock's iShares Bitcoin Trust ETF shares and executed coordinated algorithmic selling of Bitcoin at 10 AM to acquire IBIT at a discount [4]. Group 4: Market Perception and Disclosure - Bechler suggests that the public perception of accumulation may mask a significant short position, as current disclosure rules do not reveal the complete trading strategy of firms like Jane Street [5].