Bitaigen Research 
Recent Bitcoin market controversy stems from manipulation allegations against quantitative giant Jane Street, while spot Bitcoin ETFs have rebounded strongly after five consecutive weeks of outflows, with three‑day cumulative inflows exceeding $1 billion, signaling that institutional funds are reshaping the crypto‑financial landscape.
This week, rumors that “Bitcoin reliably drops at 10 a.m. each morning” originated from Jane Street’s quantitative trading and sparked widespread discussion on social media. Earlier, the court‑appointed manager of Terraform Labs had formally sued the company. However, several market observers note that current on‑chain and trading data do not support the conclusion of “sustained selling driven by a specific firm.”
These allegations arise from claims that Jane Street engaged in insider trading, allegedly exacerbating the May 2022 collapse of Terra’s algorithmic stablecoin ecosystem. Meanwhile, demand for spot Bitcoin ETFs (exchange‑traded funds) has surged after enduring five weeks of net outflows. According to Farside Investors data, U.S. spot Bitcoin ETFs recorded net inflows for three straight days this week, with Thursday’s single‑day inflow reaching $254 million.
In the Ethereum ecosystem, corporate reserves face severe challenges. As a sector representative, Bitmine Immersion Technologies has seen its held ETH unrealized loss balloon to $8.8 billion amid a prolonged market downturn.
*Image: U.S. spot Bitcoin ETF fund flows (in millions of dollars). Source: Farside Investors*
Recent crypto markets sit at the nexus of multiple forces. We have observed that rumors of quantitative giants manipulating the market have sparked broad debate, even resurrecting past legal entanglements from ecosystem collapses. At the same time, spot Bitcoin ETF fund flows have undergone a significant reversal, showing that institutional power is redefining market rhythm. This article will dissect the truth behind the allegations and explore how the strong rebound in ETF demand is reshaping the financial landscape. Through a multi‑dimensional perspective, we aim to help readers cut through the noise and discern the underlying logic of crypto‑asset compliance.
Analysts refute Jane Street’s “10 a.m. sell‑off” theory, saying Bitcoin cannot be long‑term manipulated
Crypto investors recently accused Jane Street of using programmed trading to pressure Bitcoin prices during the U.S. stock market open, but analysts argue this pattern lacks consistency. Market data show that no single institution possesses the absolute ability to push Bitcoin into a long‑term bear market.
After Terraform Labs sued Jane Street for alleged manipulation in the 2022 Terra collapse, public‑relations pressure intensified. Crypto commentator Justin Beckler pointed out that while Jane Street disclosed holding BlackRock’s IBIT (iShares Bitcoin Trust), it may have built a net short position via undisclosed hedging tools (such as put options or futures shorts). He believes the firm could be conducting algorithmic sell‑offs at 10 a.m. Eastern Time each day to accumulate ETF at lower prices.
In response, CryptoQuant research lead Julio Moreno offered a different view. He noted that buying spot while selling futures is a classic Delta‑Neutral strategy aimed at earning spread returns rather than taking a one‑sided short bet. Moreover, Jane Street’s latest 13‑F filing shows it holds not only Bitcoin ETFs but also sizable positions in Bitcoin mining firms such as Bitfarms, Cipher Mining, and Hut 8.
*Source: Julio Moreno*
Vitalik Buterin reduces ETH holdings by 17,000 in a month, possibly to fund privacy projects
Ethereum co‑founder Vitalik Buterin’s wallet balance dropped by roughly 17,000 ETH over the past month. Previously, he had said he planned to set aside tokens worth $45 million for privacy‑preserving projects.
According to Arkham Intelligence tracking data, Vitalik’s wallet fell from about 241,000 ETH in early February to 224,000 ETH this Tuesday. On‑chain analysis indicates the selling pace has accelerated; in just three days earlier this month, tokens worth about $7 million were moved out.
*Image: Trend of Vitalik’s Ethereum balance since February. Source: Arkham*
The data show these ETH were mainly processed via the decentralized exchange aggregator CoW Protocol, which uses multiple small‑swap rounds to minimize instantaneous market‑price impact.
Bitmine’s unrealized loss nears $8.8 billion as Ethereum downturn tests institutional holding confidence
As the broader crypto market weakens, corporations holding large amounts of Ethereum face mounting book‑pressure. Analysts warn that current prices have reached a critical level that will determine Ethereum’s long‑term investment outlook.
As a major ETH corporate holder, Bitmine Immersion Technologies now sits on a massive unrealized loss. Per Bitminetracker data, Ethereum’s current price is far below Bitmine’s average acquisition cost (about $3,843 per ETH), pushing its book loss close to $8.8 billion.
10x Research noted in a report that Ethereum’s trading price sits at the intersection of valuation and cost basis. This is not merely a cyclical dip but a deep test of whether the asset suffers from “structural softness.” Nonetheless, Bitmine continues a “buy‑the‑dip” strategy, last week purchasing 45,749 ETH at an average price of roughly $1,992.
*Source: 10x Research*
It is worth noting that major Wall Street institutions have not withdrawn. Including Morgan Stanley, ARK Invest, and BlackRock, the top 11 shareholders all increased their stakes in Bitmine during Q4 2025.
Aave’s cumulative lending surpasses $1 trillion, setting a new DeFi milestone
The decentralized finance (DeFi) protocol Aave has officially exceeded $1 trillion in cumulative lending, becoming the first protocol in the industry to reach this milestone.
Aave Labs CEO Stani Kulechov said the milestone marks Aave as a cornerstone of on‑chain lending. To further expand institutional business, Aave launched Aave Horizon, a market designed for traditional finance that lets institutions borrow stablecoins using real‑world assets (RWA) as collateral. Service providers such as VanEck and WisdomTree have already integrated the offering.
| Platform name | Total value locked (TVL) | Fees earned (last 30 days) |
|---|---|---|
| **Aave** | **$27.2 billion+** | **$83.3 million** |
| Morpho | $1 billion+ | ≈ $21 million |
| Compound | $1 billion+ | – |
*Source: Aave*
Curve founder: DeFi must abandon inflationary models and shift to “real‑yield” driven
Curve Finance founder Michael Egorov stressed in an interview that DeFi protocols can no longer rely on token issuance to sustain fake growth. He argued that future returns must stem from the protocol’s actual revenue.
Egorov observed that the 2020 “DeFi Summer” era of routinely 1,000 % annualized yields is unsustainable. Back then, inflows were driven mainly by speculative premiums, whereas today’s users assess risk more rationally. DefiLlama data show DeFi total value locked (TVL) has fallen roughly 38 % from its August 2025 peak, now hovering around $98 billion.
*Image: Six‑month DeFi TVL change. Source: DefiLlama*
DeFi weekly snapshot
Per Cointelegraph Markets Pro data, the top‑100 cryptocurrencies by market cap generally rose this week. Pippin (PIPPIN) led with a 55 % gain, followed closely by Decred (DCR) with over 44 % weekly increase.
*Image: DeFi locked‑value overview. Source: DefiLlama*
This concludes the deep dive into the Bitcoin manipulation allegations and the spot ETF inflow rebound. For more authoritative updates on Bitcoin (BTC) and ETFs, stay tuned to Bitaigen (Bitroot)!
Related Reading
- Bitcoin Halving Explained: Impact on Supply and Markets
- Bitcoin 2026 Market Analysis: Halving Cycle & Macro Variables
- Basel Rule Change May Spark Massive Bitcoin Liquidity
💡 Register on Binance with referral code B2345 for the maximum trading fee discount. See Binance complete guide.
