Large Trading Firms Linked to Repeated Bitcoin Drops After US Market Open
Bitcoin price repeatedly dips shortly after the U.S. market open, a pattern traders have noticed since early November. On Dec 8 BTC reversed from $91,885 to about $90,900 after the U.S. opening. Commentators and on-chain analysts cite high-frequency trading (HFT) firms and major market makers — notably Jane Street — as possible drivers. The alleged sequence: rapid sell pressure near the open, price pushed into liquidity gaps, re-entry at lower levels and subsequent recovery. Jane Street reportedly holds a large $2.5 billion position in BlackRock’s IBIT ETF, which some suggest influences its trading behaviour. OnChainMind’s volatility-fractal analysis indicates markets have not reached a low-volatility bottom yet, implying more downside or sideways action until volatility subsides. For traders, the article highlights predictable intraday pressure around U.S. market hours, possible accumulation by large players, and continued high volatility — factors relevant for timing entries, short positions, and risk management. Disclaimer: this is market commentary, not investment advice.
Neutral
The article outlines a recurring intraday pattern — BTC selling pressure after U.S. market open — and attributes it to large HFT firms and market makers. This signals elevated short-term volatility and predictable intraday risk rather than a clear directional trend. If large players are accumulating via ETFs (e.g., IBIT) while causing short-term down moves, the net long-term impact could be bullish as positions build; however, persistent high volatility and repeated engineered dips can sustain bearish sentiment among short-term traders. Historically, supply-squeezing accumulation by large firms (alleged in 2022 episodes) created sharp drops then rebounds; those events produced short-term turbulence but supported eventual recoveries once accumulation completed. Therefore, traders should expect: short-term bearish pressure around U.S. open (opportunities for intraday shorts or liquidity-taking buys), continued elevated volatility, and potential medium-to-long-term upside if accumulation by institutions continues. Risk management (tight stops, reduced size) is advised due to manipulation risk and uncertain timing of position unwinds.