Bitcoin has consistently experienced price drops shortly after the U.S. market opens at 10 AM, erasing gains made in the previous hours. This pattern, observed since early November, suggests a high-frequency trading strategy, potentially executed by Jane Street, a leading high-frequency trading firm. The strategy involves selling Bitcoin at market open, driving prices down to liquidity pockets, and then repurchasing at lower prices, repeating this cycle daily.
Jane Street, known for its speed and liquidity in market manipulation, reportedly holds $2.5 billion in BlackRock's IBIT ETF, making it a significant player in Bitcoin's market movements. This activity indicates that recent Bitcoin declines may be more about strategic trading maneuvers than macroeconomic factors. Once these large players complete their buying, Bitcoin is expected to resume its upward momentum.
Bitcoin's Morning Dips Linked to High-Frequency Trading Patterns
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