Bitcoin Gains Over 2% as Selling Algorithm Rumors Surface
Bitcoin's price advanced past $66,000 on Wednesday, gaining more than 2% to reach a high of $66,300 on the Bitstamp exchange before consolidating. The move coincided with growing market speculation that quantitative trading firm Jane Street had ceased a persistent, algorithmic selling program. A theory circulating on social media claims the firm executed a coordinated Bitcoin sale daily at 10:00 AM UTC-5, which had allegedly suppressed the price since October 2025. The absence of this pattern today is being interpreted by some traders as the direct cause for the market's upward momentum.
Lawsuit Alleges Manipulation Dating to 2022 Bear Market
The rumors are rooted in a recent lawsuit filed by the defunct crypto company Terraform Labs against Jane Street. The legal complaint alleges widespread market manipulation that impacted the crypto market throughout 2022, the year Bitcoin reached its last bear market bottom of $15,600 in the fourth quarter. While Jane Street has dismissed the accusations as “baseless, opportunistic claims” in a statement to Cointelegraph, the legal action has fueled theories that the firm was compelled to suspend its trading strategy. However, the narrative has met skepticism, with some analysts arguing that a top quant firm would not employ such a visibly repetitive and easily trackable trading pattern.
Thin Order Books Trigger $213M in Short Liquidations
The price rebound was amplified by thin market liquidity, according to Keith Alan, co-founder of trading resource Material Indicators. Alan noted that a “razor thin order book” allowed the price to accelerate upward rapidly after overhead sell liquidity was pulled from exchanges. This sharp, unexpected move caught many bearish traders off-guard, leading to significant market liquidations. Data from CoinGlass shows that in a 24-hour period, total crypto liquidations reached $333 million, with short positions accounting for the vast majority at $213 million.
