Market Analysts Dispute Claims of Jane Street's Influence on Bitcoin Price

Market participants have been debating the influence of Jane Street on Bitcoin's price, with some accusing the firm of engineering liquidity sweeps to accumulate spot ETFs at a discount. However, analysts argue that the data does not support these claims, and that any observed patterns are likely due to broader market factors.

Jane Street's holding of BlackRock's iShares Bitcoin Trust exchange-traded fund (ETF) has been cited as evidence of potential manipulation, with some suggesting that the firm may be masking a net short Bitcoin position through hedges. However, experts point out that this is not unique to Jane Street and is a common approach for delta-neutral funds seeking to capture spreads.

The online narrative centers on the idea that Bitcoin regularly drops shortly after 10 am ET, which overlaps with the start of US trading. However, blockchain data suggests that Bitcoin has actually recorded cumulative returns of 0.9% in this window since January 1, contradicting claims of a 'systemic dump.'