Bitcoin’s daily price dip at 10 AM, frequently observed in the past, has suddenly vanished following a significant legal case. This change is linked to the role of Jane Street, a prominent financial institution and an authorized participant in the spot Bitcoin ETF market. As an authorized participant, Jane Street plays a crucial role in the ETF market and influences price formation at market open. ETFs, or exchange-traded funds, are financial products traded on stock markets that enable investors to gain exposure to cryptocurrencies like Bitcoin without directly purchasing them. Authorized participants maintain the balance between ETF shares and the underlying crypto assets, impacting market prices. The daily 10 AM price drop was largely due to authorized participants buying or selling substantial amounts of Bitcoin at market open, driving prices down. However, following the major lawsuit, behavioral changes by Jane Street and other authorized participants have eliminated this daily price decline. This development is significant for crypto market participants, as sudden price fluctuations can create uncertainty for investors. With the disappearance of this daily dip, the market now appears more stable, potentially benefiting investment activities. Nonetheless, it remains important to monitor future market trends and the evolving legal environment, as various factors—including regulatory decisions, participant behavior, and global economic conditions—continue to influence Bitcoin’s price direction.
Source: coindesk
