Bitcoin is now being used by a company called Jane Street as a cash machine. And those "positive" news you see might actually be tools for them to harvest your gains.

At 3 a.m. yesterday, I was awakened by a push notification: Jane Street was federally indicted for allegedly manipulating Terra's collapse with insider information.

The Luna crash, which wiped out $40 billion in market value, is finally being held accountable.

I instantly lost all sleepiness.

Insider trading is just the appetizer

It all started with an intern. Bryce Pratt, first interning at Terra, then switching to Jane Street. This guy created a group chat called "Bryce's Secret," becoming a bridge between the two companies.

On May 7, 2022, Terra withdrew $150 million from Curve. Before the news was even announced, Jane Street precisely withdrew $85 million. Ten minutes later, UST started to decouple, and within days, $40 billion evaporated.

Jane Street perfectly avoided a $200 million loss. This isn’t luck; it’s blatant insider trading.

Now Do Kwon is serving 15 years in prison, while Jane Street still wields influence in the market.

The death hour every morning at 10 a.m.

Since late 2024, Bitcoin has exhibited a strange phenomenon: every morning when the US stock market opens, Bitcoin crashes precisely on time.

Not occasionally, but every day. Not randomly, but systematically.

In December last year, Bitcoin suddenly plunged from $89,700 to $87,700, vaporizing $171 million in long positions instantly. Then it rebounded within hours, as if nothing had happened.

The most bizarre part is: after the Terraform lawsuit documents were made public, this dumping stopped. Once the attention shifted, the dumping resumed.

What does this indicate? It shows that Jane Street knows exactly what they’re doing and when to stop.

Seemingly bullish, actually bearish

13F filings show that Jane Street holds $790 million worth of IBIT. Many retail investors get excited when they see this: "Institutional entry!"

But what you don’t know is: 13F only discloses long positions in stocks, not options, futures, or swaps.

Jane Street might be fully hedging these stocks with $790 million worth of puts. Their derivatives positions could even be larger than their stock holdings, making their net position negative — when Bitcoin falls, they profit.

Former hedge fund manager Michael Green put it bluntly: "Anyone who thinks this is good news is a damn financial death row inmate."

The privilege of being a cash machine

Jane Street is one of only four companies worldwide capable of creating and redeeming physical IBIT. What does that mean?

It holds the "pipeline" connecting ETFs and real Bitcoin, which others don’t have. It can arbitrage between fund prices and spot prices, accumulating assets that ordinary investors can’t access.

Even more frightening, it can use this privileged position to dump spot prices, trigger liquidations, and then buy back at lower prices.

This is why Bitcoin should be $150,000 right now but isn’t.

A lesson from India

Jane Street’s behavior in the Bitcoin market hasn’t been investigated yet, but in India, it’s already been caught.

In 2025, the Indian Securities and Exchange Commission found that Jane Street made $4.3 billion through coordinated trading over two years, earning $880 million in just one day. The regulators directly restricted its trading activities.

If they do this in India, where regulations are stricter, will they hold back in the more lenient crypto markets?

The false scarcity of 21 million

Bitcoin’s cap of 21 million is based on the premise that price discovery is genuine.

But now? Jane Street can create "synthetic" Bitcoin infinitely through undisclosed derivatives, on top of their ETF holdings.

While Bitcoin is truly scarce at the protocol level, the price discovery mechanism has been compromised.

There’s only one truth

Every Bitcoin holder should know the answer: what are Jane Street’s real positions — long or short?

Until you know this, it’s not the market that sets Bitcoin’s price — it’s Jane Street.

So next time you see Bitcoin inexplicably crashing, don’t blame market sentiment or technical factors.

Blame Jane Street.

They turn your faith into their cash machine. And with current disclosure rules, they can continue doing so openly, openly harvesting your gains.

That’s why you’ll never see Bitcoin’s true bull market.
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