Author: Bull Theory, Crypto Analyst; Translated by: Jinse Finance
Today, Bitcoin erased 16 hours of gains within just 20 minutes of the US stock market opening.
Since early November, Bitcoin has almost always fallen after the US stock market opens. The same thing happened in the second and third quarters.
Zerohedge has pointed this out multiple times and believes Jane Street is the most likely manipulator behind it all.
Observing the charts, you'll find this pattern too consistent to ignore: prices plummet within the first hour after opening, then slowly recover. This is a typical high-frequency trading technique.
This also fits their characteristics:
Jane Street is one of the world's largest high-frequency trading firms.
They possess the speed and liquidity to influence market trends within minutes.
Their operation seems very simple:
1. Sell Bitcoin at the opening bell.
2. Push prices toward areas with ample liquidity.
3. Buy back at a lower price.
4. Repeat daily.
In this way, they accumulated billions of dollars worth of Bitcoin.
Currently, Jane Street holds $2.5 billion worth of BlackRock IBIT ETFs, making it one of IBIT's top five holdings.
This means that the plunge in Bitcoin was not caused by a weak macroeconomy, but rather by manipulation by a large institution.
Bitcoin will continue to rise once these big players stop buying.
