A lawsuit targeting Wall Street market maker Jane Street was followed by a sharp move across crypto, with the market adding about $200 billion in 48 hours. Bitcoin rebounded from roughly $63,000 and gained 9% to 10%, briefly trading above $70,000. Ether climbed back above $2,000 with a rise of more than 14%, while Solana advanced 15%.
Terraform complaint focuses on UST liquidity pulled before the Terra collapse
Court documents filed on February 24 show that the bankruptcy administrator of Terraform Labs accused Jane Street of insider trading tied to the 2022 Terra/LUNA collapse. The complaint alleges that Jane Street removed about $85 million in UST liquidity from a Curve pool just hours before the ecosystem unraveled. Jane Street denied the allegations and said the claims lack merit.
The filing drew attention well beyond the old Terra case. Traders have spent months discussing a recurring selloff pattern in Bitcoin near 10 a.m. Eastern Time, a window that overlaps with the U.S. stock market open.
The recurring 10 a.m. selloff pattern came under fresh scrutiny
Some market participants argued that the repeated selling pressure looked too regular to be random and may have reflected algorithmic activity from large trading firms. Research outlet Bull Theory said the two-month pattern of heavy morning selling paused after news of the Jane Street lawsuit broke.
Price action added to that narrative. Bitcoin and Ether held intraday support instead of breaking lower, then pushed higher. At the same time, about $120 million in short positions were liquidated over a short period, pointing to a strong shift in buying pressure.
Altcoins joined the rally as traders watched key resistance levels
The rally spread across major tokens. Polkadot rose 35%, BNB added 9%, and Chainlink gained 15%. The source material places Bitcoin resistance in the $69,000 to $70,000 range, with major support between $60,000 and $63,000. For Ether, the cited consolidation band is $2,100 to $2,300, with an extended target of $2,800. Solana was described as forming a triple bottom, with $105 marked as the next channel resistance after a break above $91.
Fund flow remains uneven even as on-chain activity improves
The rebound has not been fully confirmed by institutional flows. Crypto ETFs posted net inflows in only 5 of the past 20 weeks, according to the source, which suggests that large capital has not returned in a steady way. Volume and sustained inflows are still the main points traders are watching.
Even so, on-chain data has started to show a change around the 10 a.m. window that had been under scrutiny, with buying activity increasing and sell volume declining. Bull Theory said capital that had been held back by manipulation concerns could re-enter as confidence improves. The report also noted that former U.S. President Donald Trump recently proposed banning members of Congress from trading stocks, a development some market observers viewed as indirectly supportive for crypto.