4 Minutes
Bitcoin rebounds above $66,000 as speculation mounts
Bitcoin (BTC) pushed back above $66,000 on Wednesday, seeking to hold the $65,000 level as support during the Wall Street open. Traders and analysts offered competing explanations for the move, with attention focusing on alleged institutional selling pressure tied to a well-known quantitative trading firm.
What triggered the rally?
Data from TradingView captured a sharp rebound that saw BTC/USD spike to roughly $66,300 on Bitstamp before settling into a tight range. Short-term gains were more than 2% at the time of reporting as market participants debated whether algorithmic activity or thin liquidity drove the swift price swing.
One persistent theory circulating through social channels and court filings centers on Jane Street, a U.S.-based quantitative trading firm. Terraform Labs, the defunct company behind Terra/Luna, has cited Jane Street in litigation and alleged the firm contributed to coordinated algorithmic selling that pressured BTC throughout late 2025 and into 2026.
BTC chart snapshot
BTC/USD one-hour chart.
Jane Street denies manipulation claims
Jane Street has publicly dismissed the accusations as unfounded. The firm described the allegations as opportunistic and without merit. Legal proceedings linking trading behavior to wider market weakness have intensified scrutiny of how high-frequency and quant strategies interact with crypto markets.
Proponents of the Jane Street theory argue there was a recurring pattern — an alleged automated sell program at 10 a.m. Eastern that coincided with daily downward pressure on BTC prices. Some market observers speculated that if such a strategy was curtailed due to litigation or operational changes, the removal of that selling pressure could allow prices to retrace higher.
Traders push back on simple explanations
Not everyone accepted the theory. Several experienced traders and crypto commentators warned against attributing broad market moves to a single firm or algorithm. Crypto YouTuber Wise Advice and other critics noted that a top quant shop would be unlikely to run a transparent, easily traceable pattern for months.
Market commentary
“You’re talking about Jane Street — a top quant firm — and assuming they would run a visible daily pattern,” one commentator wrote on X, urging traders to consider other drivers such as liquidity shifts and macro events.
Liquidity, order-book dynamics and liquidation data
Several market participants flagged “razor thin” order books on major exchanges as a key factor amplifying price moves. Material Indicators cofounder Keith Alan pointed out that overhead sell liquidity appeared to be reduced ahead of significant macro events, which left BTC vulnerable to sharper moves when buy-side pressure arrived.
Historically low resting orders mean a relatively modest buy or sell wave can produce outsized volatility. That dynamic can be exacerbated when high-frequency strategies and retail stop levels coincide.
Four-hour technical view
BTC/USD four-hour chart.
CoinGlass reported roughly $333 million in crypto liquidations across the previous 24 hours, with shorts accounting for about $213 million of the total. These forced deleveragings likely added fuel to the rebound as short positions were squeezed.
Crypto liquidation history (screenshot).
What this means for traders and investors
For short-term traders, flipping $66,000 into sustainable support could open the door to a further relief rally, but technical resistance remains. Longer-term investors should weigh ongoing regulatory and legal developments — including litigation that references market manipulation — alongside macro factors and ETF flows that continue to influence Bitcoin's price discovery process.
In sum, Wednesday’s move appears to be the result of multiple overlapping forces: rumors and legal headlines, thin exchange order books, liquidation cascades and routine market mechanics. Pinpointing a single cause may be tempting, but the crypto market’s recent behavior underscores how liquidity and leverage can amplify even small catalysts.
Source: cointelegraph
Comments
coinrift
Jane Street scapegoat? feels sketchy, same 10am pattern sounds like confirmation bias. Thin orderbooks + leverage more likely imo tho
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