The 10AM Dump Is Gone. The Internet Has Theories.

Hey Lantern Community,

Wednesday was one of the best days crypto has seen in months. Bitcoin crossed $70,000, Ethereum gained 13%, and Solana surged 15%. Over $170 billion in market cap was added in a single session.

The catalyst might be a federal lawsuit against Jane Street Group.

But first, market update!

Who is Jane Street?

Jane Street is a New York-based quantitative trading firm with no CEO. They describe themselves as an "anarchist commune." In the first nine months of 2025 alone, they generated $24 billion in net trading revenue, more than all of 2024 combined.

Their Q2 2025 was the highest single-quarter trading revenue ever recorded by any Wall Street firm. They are the one of the most profitable trading institutions on Earth.

The lawsuit

This week, the administrator overseeing Terraform's bankruptcy filed a federal lawsuit in Manhattan, accusing Jane Street of using insider information to trade ahead of the Terra-Luna collapse in May 2022, a crash that wiped out $40 billion in market value and triggered a chain reaction that eventually brought down Three Arrows Capital, Celsius, and FTX.

The allegations are blunt.

On May 7, 2022, Terraform quietly withdrew $150 million from a major liquidity pool without any public notice. Ten minutes later, a wallet linked to Jane Street withdrew $85 million from the same pool. The lawsuit alleges a former Terraform intern who had joined Jane Street was feeding material nonpublic information directly to their trading desk. The conclusion: "The transactions made by Jane Street would have been impossible without their exclusive insider information."

Ordinary people lost retirement savings, college funds, and life savings in days. Jane Street called the allegations "desperate" and "baseless."

This isn’t their first lawsuit

In July 2025, India's market regulator SEBI filed one of the largest manipulation charges in Indian financial history against Jane Street.

On 18 derivative expiration dates, they allegedly ran the same playbook: push the index up in the morning while quietly building massive short positions and then dump in the afternoon and collect profits. Estimated illegal gains came to $580 million.

SEBI banned them from Indian markets, and Jane Street is currently appealing.

The 10AM pattern

https://x.com/jameslavish/status/1892966125157458109?s=20

Since November 2025, traders have noticed something strange.

Every morning around 10AM EST, the moment US markets open, a wave of sell orders hits Bitcoin. It would surge overnight in Asia and Europe, then get dumped the moment New York opened. Day after day, for months.

The day after the Jane Street lawsuit dropped, Bitcoin went higher at 10 AM instead.

There is no public evidence definitively linking Jane Street to that pattern, but as Bloomberg's ETF analyst Eric Balchunas put it, "The bogeyman is gone. That's the vibe right now."

Why this matters for you as a borrower

Here's the thing about sudden, unexpected market moves: they cut both ways. The same forces that had been suppressing prices can reverse just as fast as they appeared. Bitcoin fell from above $120,000 in October all the way to below $65,000 before this week's rebound.

If you had been borrowing against your crypto during that slide, you'd want a lender that doesn't auto-liquidate you the moment prices dip and instead gives you time to breathe before making decisions.

That's exactly the idea we built Lantern around.

While the market was sliding, platforms with tight LTV triggers and no grace periods were firing off liquidations automatically.

At Lantern, you get a

1. 72-hour grace period

2. Zero liquidation fees (because we're not incentivized to sell your collateral). We make money when you stay in your loan, not when we exit it for you.

Markets move in unexpected ways, and we're here to make sure you survive them and ideally thrive.

Want to see what borrowing against your crypto looks like right now?

Text us at (415) 365-0100 or try our calculator: https://lantern.finance/borrow

Until next time, The Lantern Team

This newsletter is for educational purposes only and does not constitute financial advice. Always consult with your financial advisor before making lending decisions.