Cryptocurrency Market Sees Strong Recovery Amidst Lawsuit Against Jane Street

The cryptocurrency market has seen a significant rebound, with total market capitalization climbing around 8% to nearly $2.5 trillion. This move marks one of the strongest single-day advances in recent weeks and interrupts a steady decline that had weighed on digital assets since October.

Bitcoin led the recovery, rising more than 5% to trade near $68,443. Notably, the rebound came just a day after Bitcoin had slipped below $65,000, only to reverse course. The crypto market has been in a major downturn since Bitcoin hit a record above $120,000 in October.

The rally also spread across the broader market, with Ethereum advancing about 10% to $2,067, and other leading assets following suit. XRP gained 7% to $1.45, while BNB rose 6.2% to $628.78. Solana added 8% to reach $87.75.

The underlying catalyst for the price action may have come from legal developments, with Jane Street becoming the target of a lawsuit brought by the administrator managing the liquidation of Terraform Labs. The lawsuit alleges that the trading firm leveraged confidential information obtained from insiders at Terraform. This event is widely regarded as a landmark in the cryptocurrency space and has triggered a lengthy market downturn.