Bitcoin staged a sharp recovery on Wednesday, climbing back above $66,000 as market chatter intensified around alleged institutional selling pressure from Wall Street trading firm Jane Street. The move came after days of choppy price action, with traders divided over what truly drove the rebound.

At the time of writing, Bitcoin was trading near $65,300 after touching $66,300 on Bitstamp earlier in the session. The bounce of more than 2 percent in 24 hours has reignited debate across the crypto community, particularly around claims of coordinated algorithmic selling linked to Jane Street.

Rumors Swirl Around Jane Street’s Alleged Selling Strategy

Speculation circulating on social media suggests that Jane Street may have been applying consistent selling pressure on Bitcoin at 10 a.m. Eastern Time each trading day. According to the theory, algorithmic trades placed at that time contributed to months of downside pressure starting in October 2025.

The claims gained traction as Jane Street faces legal scrutiny connected to a complaint filed by Terraform Labs. The complaint references alleged market manipulation during the 2022 crypto downturn, a period when Bitcoin eventually fell to a bear market low of $15,600 in the fourth quarter.

Some traders speculate that ongoing legal proceedings could have forced Jane Street to pause or adjust its trading strategy, potentially easing the downward pressure on Bitcoin and allowing prices to rebound.

Jane Street, however, has rejected accusations of manipulating crypto markets. The firm reportedly described the claims as baseless and opportunistic.

Skepticism Over the “10 a.m. Price Slam” Theory

Not everyone in the crypto space is convinced by the 10 a.m. narrative. Several analysts and commentators argue that the idea of a single firm consistently controlling Bitcoin’s direction oversimplifies how global markets function.

Among the critics was crypto YouTuber Wise Advice, who questioned the logic behind the theory. He suggested that Bitcoin’s price movements are influenced by a range of factors, including macroeconomic conditions, derivatives positioning, liquidity flows, and global investor sentiment.

Market participants also point out that Bitcoin trades around the clock across multiple exchanges worldwide. While institutional flows can influence price action, attributing months of market direction to a single time-based strategy raises doubts for many seasoned traders.

Thin Order Books Add Fuel to Volatility

Beyond rumors of institutional activity, liquidity conditions appear to have played a significant role in the latest move.

Keith Alan, cofounder of trading resource Material Indicators, noted that exchange order books were unusually thin. In such conditions, relatively modest buying pressure can trigger outsized price swings. When liquidity is shallow, price gaps form more easily as there are fewer resting orders to absorb aggressive market buys or sells.

According to Alan, overhead sell liquidity had been pulled ahead of US President Donald Trump’s State of the Union address. The removal of large sell walls may have made it easier for Bitcoin to break higher during the session.

Thin liquidity often amplifies volatility, particularly when traders are heavily positioned in derivatives markets. This dynamic was visible in liquidation data over the past 24 hours.

$333 Million in Liquidations Shake the Market

Data from CoinGlass showed that total crypto liquidations reached approximately $333 million in 24 hours. Of that figure, around $213 million came from short positions. When short sellers are forced to close positions due to rising prices, their buy orders can accelerate upward momentum.

This short squeeze effect may have contributed to Bitcoin’s quick move past $66,000. As leveraged traders were pushed out of bearish bets, the resulting cascade of buy orders likely added to the rally.

However, traders remain cautious. Prominent market analyst Jelle warned that Bitcoin faces strong resistance around the $66,000 level. The area aligns with previous range lows and a four hour trend barrier. Until that resistance is decisively reclaimed as support, he argues, the broader short term trend remains under pressure.

Market Awaits Clear Direction

Despite the rebound, uncertainty still hangs over the market. While rumors surrounding Jane Street have sparked heated discussion, concrete evidence tying a single firm to systematic Bitcoin suppression remains limited.

For now, traders are watching liquidity levels, derivatives positioning, and macro signals for clearer direction. If Bitcoin can flip $66,000 into support, it may open the door for further upside in the short term. Failure to do so could see price revisit lower support zones.

As always in crypto, narratives can shift quickly. Whether this bounce marks the start of a broader recovery or simply another volatile swing remains to be seen.