Was Jane Street behind the bitcoin crash? A deep dive into why that theory may not not hold

CoinDesk

by Shaurya Malwa

February 26, 2026

AI-Generated Deep Dive Summary

Jane Street, a major player in the cryptocurrency markets, has come under intense scrutiny as some investors speculate that the firm may be manipulating Bitcoin prices. The theory, which has gained traction on social media platforms like X, suggests that Jane Street systematically sells Bitcoin at 10 a.m. ET to drive prices down and then buys ETFs (Exchange-Traded Funds) at a discount. This alleged "price slam" has occurred almost every morning since November 2025, with Bitcoin dropping by 2-3% within minutes of the U.S. market open. However, experts like crypto economist Alex Kruger have pointed out that the data doesn't support this theory. While Bitcoin prices do experience volatility at 10 a.m., Kruger's analysis shows that these fluctuations are inconsistent and correlate with broader market movements rather than any coordinated action by Jane Street. The IBIT ETF, which Whale Factor accused Jane Street of manipulating, has shown negligible returns during the 10:00-10:30 ET window, indicating no systematic dumping. The allegations against Jane Street have intensified following a lawsuit filed by TerraForm Labs' bankruptcy operator, accusing the firm of insider trading that contributed to Terra's collapse in 2022. Additionally, India's SEBI banned Jane Street from local markets in June 2023, citing manipulation in derivatives markets. These legal issues have fueled speculation about Jane Street's role in the Bitcoin market. Despite the viral theories and historical legal troubles, there is no concrete evidence linking Jane Street to the 10 a.m. price drops. Market data suggests that these movements are part of broader risk-asset repricing rather than any foul play by Jane Street. This case highlights the importance of critically analyzing market trends and avoiding unfounded conspiracy theories, which can mislead investors and create unnecessary panic in the crypto markets. For readers interested in cryptocurrency, understanding the mechanics of ETFs and authorized participants like Jane Street is crucial. While the 10 a.m. Bitcoin "price slam" may seem suspicious, it appears to be a natural part of market dynamics rather than a deliberate manipulation. This story underscores the need for transparency and education in the crypto space, where misinformation can

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Originally published on CoinDesk on 2/26/2026