Bitcoin fans latch onto ‘ridiculous’ Jane Street conspiracy to explain price slump

Bitcoin enthusiasts are speculating on a conspiracy involving Jane Street to explain the cryptocurrency's recent price slump, which has seen a 40% drop since October.

It’s been a tough few months for Bitcoin enthusiasts. The leading cryptocurrency has seen its price plummet over 40% since October , leaving many investors scratching their heads. What’s behind this downturn? Unlike previous dips, there hasn’t been a clear reason. But this week, the digital currency's online supporters have latched onto a new conspiracy theory that points a finger at a well-known name: Jane Street. Could Jane Street Be Behind Bitcoin’s Price Decline? According to some members of the ever-vocal Crypto Twitter, Jane Street, a secretive Wall Street trading firm, is allegedly responsible for systematically depressing Bitcoin’s price through dubious ETF-related trading practices. These claims intensified earlier this week when Bitcoin experienced a mid-week rally, with some suggesting that Jane Street’s trading strategies changed after they were exposed. However, seasoned Wall Street professionals are quick to lambast these claims as flimsy at best. One source close to Jane Street labelled the accusations as “an absolutely ridiculous conspiracy theory.” But what exactly is driving these allegations? What’s the Role of Jane Street in the Crypto World? Jane Street is known as an “authorized participant” in the growing ETF market for cryptocurrencies, which includes offerings by firms like BlackRock. Authorized participants, or APs, are typically deep-pocketed firms responsible for ensuring that the price of ETF shares accurately reflects the value of the underlying assets, allowing them to profit from arbitrage opportunities. For some time, Jane Street has acted in this capacity for Bitcoin. Yet, recent social media posts began to surface, alleging that the firm was engaged in manipulative practices, such as dumping Bitcoin holdings at specific times each morning while simultaneously holding short positions to profit from the resulting price dip. Yet, there hasn’t been any concrete evidence to substantiate these claims. What Do Experts Say? Market veterans