Bitcoin Surpasses $70,000, Were Wall Street Institutions the Real Culprits Behind the Notorious “10 a.m. Crash”?

▲ Bitcoin Surges Past $70,000—Was a Wall Street Institution the Real Force Behind the Infamous ‘10 a.m. Crash’? / Gemini-generated image

As Bitcoin (BTC) broke past $70,000, staging its strongest single-day rebound, analysis suggests that behind the explosive rally lies a massive lawsuit targeting alleged market manipulation by a major Wall Street institution, sending shockwaves through the market.

According to investment media outlet FXLeaders on February 26 (local time), Bitcoin smashed through the $70,000 barrier, pushing the total cryptocurrency market capitalization up to $2.4 trillion. The real focal point of this surge, which injected $170 billion into the ecosystem in just 24 hours, is not merely the price increase itself but the sudden disappearance of the notorious “10 a.m. crash” pattern that had tormented investors for months.

At the center of this mysterious development is a lawsuit filed by the liquidators of Terraform Labs against Wall Street firm Jane Street. The complaint alleges that Jane Street previously manipulated Bitcoin prices using insider information during the Terra-Luna collapse and more recently orchestrated deliberate flash crashes shortly after the New York stock market opened, triggering retail stop-loss orders and securing discounted buying opportunities. Intriguingly, immediately after the lawsuit was filed, the routine 10 a.m. wave of sell-offs abruptly ceased, replaced instead by massive bullish candles.

With artificial selling pressure lifted, the cryptocurrency market is staging a strong relief rally, following Bitcoin’s 7.2% intraday surge. Bloomberg analyst Eric Balchunas noted that the removal of a structural seller from the market has finally allowed suppressed organic demand to breathe, suggesting that this rebound may mark the beginning of a sustainable and powerful upward momentum rather than a simple technical bounce.

The near-vertical rally has put prominent gold advocate and Bitcoin skeptic Peter Schiff in an increasingly difficult position. Schiff had recently predicted further declines based on Bitcoin’s 50% drop from its peak, but as the likelihood grows that the recent downturn stemmed not from weak demand but from blatant institutional manipulation, bearish traders are being forced into a short squeeze, scrambling to cover their positions.

Experts are now closely watching whether Bitcoin can firmly hold the $70,000 level at the New York market open without another feared 10 a.m. crash. In the short term, a successful consolidation above $68,500 could ignite an unprecedented surge toward the next target of $74,000, while the outcome of the legal battle involving Jane Street is expected to further amplify market volatility.

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