Bitcoin’s Fall: Jane Street or Just a Joke?

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During a recent appearance on the “What Bitcoin Did” podcast, Galaxy research Alex Thorn spurned the notion that the price of Bitcoin crashed due to the shenanigans of infamous quantitative trading firm Jane Street, as if the market were a child’s toy to be toyed with.

At the same time, he thinks that Wall Street negativity on Bitcoin is “real but wrong,” a sentiment as fleeting as a moth’s flutter in a storm.

“Twitter cope” 

Following the Terraform lawsuit, which accuses the New York-headquartered firm of insider trading, Bitcoiners found a new villain, as if the cosmos hadn’t already provided enough demons.

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They started alleging that Jane Street was behind the 2022 cryptocurrency winter, a tale as old as time, but with more spreadsheets. Some even went as far as assuming that the trading giant is the reason why the price of Bitcoin is currently not at $150,000, a figure as lofty as a dreamer’s hope.

Some alleged that the firm, which acts as an authorized participant for spot Bitcoin ETFs, was running an algorithm that would constantly suppress the price of Bitcoin, a conspiracy so intricate it would make a Shakespearean villain blush. Some noticed that the price of BTC would constantly drop around 10 AM ET (U.S. stock market open), as if the market itself were a clockwork beast with a grudge.

Bitwise advisor Jeff Park recently stated that a specific regulatory loophole would give Jane Street a unique advantage that would make it possible to manufacture short ETF shares at will, a revelation as thrilling as a librarian discovering a secret wine cellar.

However, multiple theories dismissed the theory as unfounded, and Thorn is in their camp. Thorn has stated that the recent conspiracy theory is just “straight-up Twitter cope” and “a manufactured” controversy, a phrase that drips with the bitterness of a man who’s just lost his last dime to a roulette wheel.

“There’s, you know, a market making firm, a quant trading firm, they’re very often, you know, in a trade like this, most commonly they’re probably trading it neutral, delta neutral. So they’re doing the basis trade or some kind of arbitrage or hedge, right?… So, what is what do we think the actual incentive would be for them to suppress the price?” Thorn said during the podcast appearance, his words as sharp as a blade and as hollow as an empty wallet.

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2026-03-01 12:04