Bitcoin Rallies $120B as 10 AM ’Jane Street’ Dump Pattern Pauses After Lawsuit
Bitcoin surged roughly 10% over two days, adding about $120 billion to market capitalization after a lawsuit named trading firm Jane Street was filed. The move ended a sequence of five weekly losses, turning the weekly candle green, and coincided with an apparent pause in a recurring 10:00 AM sell-off traders had nicknamed the “Jane Street dump.” Trading volumes rose during the rally; analysts report stronger spot demand and reduced short pressure in derivatives. On the daily chart, Bitcoin bounced from near $60,000 toward $68,000 with immediate resistance at $70,000–$72,000 and support around $60,000–$65,000. The broader crypto market gained nearly $200 billion as major tokens including Ethereum and Solana also advanced. No formal exchange data links the lawsuit to the 10 AM pattern; market participants note the timing but caution that causation is unproven. Traders are watching legal developments, 10 AM price behavior, flows between spot and derivatives, and whether the rally sustains above key resistances.
Bullish
The news is broadly bullish for crypto traders for several reasons: 1) Price and market-cap impact — Bitcoin’s ~10% two-day gain and $120B market-cap increase show strong short-term demand, and the weekly candle flipping green after five red weeks signals a potential trend reversal or at least a pause in selling pressure. 2) Flow dynamics — Reported higher spot volumes and reduced short pressure in derivatives point to real buying rather than purely leveraged squeezes, which supports more durable upside. 3) Market breadth — A nearly $200B rise across the crypto market, with ETH and SOL gains, indicates coordinated risk-on positioning rather than isolated BTC moves. 4) Narrative change — The apparent interruption of the recurring 10:00 AM sell-off (the “Jane Street dump”) removes a predictable intraday headwind that traders had been pricing in; even if causation is unproven, the behavioural change can reduce intraday volatility and improve market confidence. Short-term implications: increased bullish momentum, higher intraday volatility while traders reassess the 10 AM window, and potential continuation toward $70k–$72k if buying sustains. Watch for profit-taking, liquidation-driven pullbacks, and whether spot demand holds once the legal headlines fade. Long-term implications: if sustained, the shift from systematic intraday selling to stronger spot accumulation could support higher base levels for BTC and improve ETF/spot market health; however, regulatory or legal developments related to the lawsuit could reintroduce uncertainty. Overall, the event is a positive catalyst but requires confirmation via follow-through price action, volume persistence, and formal data linking structural flow changes.