On December 9th, Bitcoin experienced another dramatic change in its price behavior. As soon as the US stock market opened, Bitcoin’s price dropped by half within just 20 minutes. What’s more strange is that this isn’t a random occurrence. Since early November, whenever the US stock market opens, Bitcoin’s price tends to fall. This pattern has also occurred repeatedly in the second and third quarters. One of the most discussed topics in the market is that Zerohedge has repeatedly pointed out that this consistent pattern of price drops likely comes from the same underlying force. Jane Street is considered the most likely culprit behind these actions. Whether true or not, this frequent pattern of price drops has become a key factor driving Bitcoin’s recent volatility, and it has forced the market to reevaluate the influence of “Wall Street” on the pricing of crypto assets.

If you look at the charts, you’ll see that this pattern is too consistent to be ignored: prices drop significantly within the first hour after opening, then slowly recover. This is a typical high-frequency trading strategy.

It also fits their characteristics:
● Jane Street is one of the largest high-frequency trading companies in the world.
● They have the speed and liquidity to manipulate market trends within minutes.
Their tactics seem simple:
1. Sell Bitcoin right after the market opens.
2. Push the price towards areas with high liquidity.
3. Buy Bitcoin back at lower prices.
4. Repeat this process daily.
Through this method, they have accumulated billions of dollars in Bitcoin.
Currently, Jane Street holds an IBIT ETF worth $2.5 billion, making it one of the top five holders of IBIT.

This means that the crash in Bitcoin wasn’t due to macroeconomic factors, but rather the result of manipulation by a major institution.
Once these big players start selling and buying again, Bitcoin will continue to rise.

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