Crypto markets are under pressure once more. Bitcoin is hovering near $62,900, Ethereum is trading around $1,800, and XRP has slipped toward $1.32. The total crypto market cap has dropped to roughly $2.18 trillion, with fear back at extreme levels.
But this time, the conversation is not just about macro conditions or rate policy. A new court filing has brought back a controversial name, Jane Street, and reignited online claims about “10 AM manipulation” in crypto markets.
The Terra Collapse Allegations
In a lawsuit filed in U.S. District Court, Jane Street is accused of using insider information during the May 2022 collapse of TerraUSD (UST). The complaint alleges that after Terraform Labs reduced liquidity in Curve’s 3pool and withdrew 150 million UST, Jane Street sold 85 million UST into the thinner pool just minutes later.
That trade, according to the lawsuit, helped trigger a chain reaction that ultimately wiped out $40 billion in value and forced Terraform to deploy its Bitcoin reserves to defend the peg.
Jane Street has denied wrongdoing, and these claims remain allegations. Still, the filing has reopened old wounds across the crypto industry.
From Terra to ‘10 AM Manipulation’
In crypto circles, Jane Street has often been mentioned in connection with what traders call the “10 AM move” — a recurring pattern where Bitcoin experiences sharp price swings around U.S. market open hours.
While no formal findings have linked Jane Street to systematic manipulation, critics argue that large institutional market makers have the scale and liquidity access to influence short-term price action, especially in thinner conditions.
Now, with the Terra lawsuit resurfacing, some traders are connecting dots. The narrative gaining traction online is simple: if a firm could allegedly capitalize on fragile liquidity during Terra’s collapse, could similar tactics be influencing markets today?
Correlation or Coincidence?
It is important to separate speculation from evidence. Terra’s collapse happened in 2022. Today’s crypto weakness is occurring under very different conditions — tighter global liquidity, risk-off sentiment, and regulatory uncertainty.
However, the latest scrutiny around Jane Street highlights a broader concern within crypto markets: the growing influence of institutional players. As crypto matures, market-making firms play a larger role in price discovery. That can mean tighter spreads — but also sharper moves during periods of stress.
Market Reality
At the time of writing, Bitcoin is down nearly 5% on the week, Ethereum has fallen close to 9%, and XRP is also under pressure. The Fear & Greed Index sits at 11, signaling extreme fear.
Are current declines tied to institutional positioning? Or simply the natural ebb and flow of a risk-driven asset class?
For now, there is no proof linking today’s volatility to any coordinated action. But the timing of this lawsuit has reignited a narrative that refuses to disappear.
Who would have thought that the same entity accused in court filings over the Terra collapse would also be at the center of ongoing “10 AM manipulation” debates?
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