Bitcoin surged past $66,000 on February 25, 2026, after investor Mike Alfred leaked details from a Jane Street insider. The contact revealed that management ordered an immediate shutdown of "manipulative" $BTC trading algorithms late the previous night. This development ended weeks of rumored daily pressure from the firm.
Jane Street serves as a primary market maker for BlackRock's IBIT ETF, managing over $790 million in holdings. Persistent rumors accused the firm of executing 10 a.m. ET dumps to trigger liquidations and accumulate BTC at lower prices. These patterns had capped price action below $65K despite broader market inflows. Today's session marked the first notable absence of such morning selling, fueling a 3-5% rally through short covering.
The timing aligns with a lawsuit filed last week, alleging Jane Street's involvement in insider trading during the 2022 Terra collapse. Such claims amplify scrutiny on the firm's $40 billion-plus trading operations and their impact on crypto markets.
Historically, $65K has functioned as fragile support amid ETF volatility and macro headwinds. The algo pause suggests potential for steadier bids if institutional selling subsides. BTC now tests resistance near recent highs, with traders monitoring flows and regulatory responses for sustained direction.
