Bitwise CIO Dismisses Claims of Market Manipulation by Jane Street

Investors and analysts have been pointing fingers at trading firm Jane Street for its alleged role in Bitcoin's recent decline, with some accusing it of orchestrating a coordinated attack on the cryptocurrency.

However, Matt Hougan, chief investment officer at Bitwise, has rejected these claims, attributing the downturn to a classic crypto winter. He argues that investor behavior and market cycles are the main drivers of the decline, rather than any external factors such as market manipulation.

Hougan's comments come amidst several lawsuits and regulatory filings that have revived old fears about market manipulation. These include reports that Terraform Labs' bankruptcy administrator had sued Jane Street in a Manhattan federal court, accusing it of using insider information before the May 2022 Terra-Luna collapse.