Jane Street May Not Be Bitcoin’s Problem as On-Chain Data Tells a Different Story

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Prashant JhaSun, March 1, 2026 at 2:02 PM GMT+1 6 min read Key TakeawaysJane Street has become a focal point for claims of Bitcoin price suppression.Long-term holders and smaller wallets have offloaded heavily, while ETF flows recently shifted from outflows to renewed inflows.The latest Bitcoin rally appears driven more by easing leverage and selective institutional buying than by the actions of any one firm.In the crypto market, sharp price moves rarely travel alone.They arrive with narratives—often tidy, sometimes conspiratorial, and almost always contested.As Bitcoin rebounded toward $68,000 in late February, one such narrative resurfaced with force: that Jane Street, the secretive quantitative trading firm, has been systematically suppressing Bitcoin’s price.On social media, critics claimed that without the firm’s alleged influence, Bitcoin would already be trading well above $150,000.But a closer look at on-chain data, exchange flows, and ETF activity tells a more complex story—one in which selling pressure extends far beyond any single institution.The theory gained momentum following a high-profile lawsuit tied to the collapse of Terraform Labs. Filed by the bankruptcy administrator, the complaint alleges that Jane Street exploited non-public information during the 2022 TerraUSD depeg, withdrawing liquidity shortly before public disclosure.That case—focused on events from nearly four years ago—has since been woven into a broader claim.Critics argue that Jane Street’s role as an authorized participant in spot Bitcoin ETFs enabled systematic selling, particularly around the 10 a.m. ET market open, pressuring prices for months.Viral posts on X amplified the idea, pointing to recurring intraday dips aligned with U.S. trading hours.One widely shared thread even joked that Strategy’s Michael Saylor might sue Jane Street for keeping Bitcoin below his average purchase price.Jane Street has denied the allegations.A source close to the firm described the manipulation claims as “absolutely ridiculous,” emphasizing its role as a liquidity provider rather than a directional trader.The firm has also rejected the lawsuit’s assertions, framing them as an attempt to deflect blame for Terraform’s failures.Blockchain data suggests that selling pressure has been far more widespread than the Jane Street narrative implies.Analytics from firms such as Glassnode and CryptoQuant show sustained distribution across multiple holder cohorts.Long-term holders—defined as wallets holding Bitcoin for more than a year—sold an estimated 143,000 BTC over the past 30 days, marking the fastest pace of distribution since August 2025.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,881.62 +2.74 (+0.04%)Dow 3048,904.78 -73.14 (-0.15%)Nasdaq22,748.86 +80.65 (+0.36%)Russell 20002,655.94 +23.58 (+0.90%)VIX21.44 +1.58 (+7.96%)Gold5,341.60 +93.70 (+1.79%)Trending tickersBRK-B Berkshire Hathaway Inc. 480.17 -24.78 (-4.91%)BTC-USD Bitcoin USD 69,404.73 +3,792.05 (+5.78%)AVAV AeroVironment, Inc. 208.32 -43.93 (-17.42%)F Ford Motor Company 13.39 -0.70 (-4.97%)CL=F Crude Oil Apr 26 71.47 +4.45 (+6.64%)PortfolioSign in to access your portfolioSign inTop gainersEMAT Evolution Metals & Technologies Corp. 10.16 +2.19 (+27.48%)OCUL Ocular Therapeutix, Inc. 10.98 +2.04 (+22.82%)AXTI AXT, Inc. 46.32 +8.42 (+22.22%)AAOI Applied Optoelectronics, Inc. 102.51 +18.28 (+21.70%)LASR nLIGHT, Inc. 67.69 +11.50 (+20.47%)Top losersTPB Turning Point Brands, Inc. 108.51 -28.48 (-20.79%)AES The AES Corporation 14.21 -3.07 (-17.77%)AVAV AeroVironment, Inc. 208.32 -43.93 (-17.42%)ELF e.l.f. 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