Crypto traders are back with a vengeance against one of its most despised enemy in a pretty unusual story for Markets. Jane Street, the high-frequency trading giant, has reportedly been hit with a lawsuit from Terraform Labs. It could be the responsible behind the infamous LUNA token that collapsed ahead of the broader 2022 crypto meltdown and the downfall of FTX. The case centers on allegations of insider trading and market manipulation tied to one of the most damaging episodes in crypto history.
In July 2025, the firm was fined $540 million by Indian regulators over derivatives manipulation that allegedly helped it generate up to $4 billion in profits. So what does this have to do with Crypto? Jane Street could also be heavily involved in Digital Assets Market manipulation. As a matter of fact, the recent lawsuit would look to confirm that thesis.
ZeroHedge (Market analyst on X) has been posting for a while about 10:00 A.M. Crypto Futures dumping which aims at fixing algorithms to trade on their side. How it functions remains a mystery, but ever since the criminal case headlines, this persistent dumping has ceased. Correlation? Causation? Who knows, but what’s for sure is that the asset class hasn’t seen such a strong day in a while. Looking at the price action, a more concrete Market observation allows us to spot that the latest double-bottom in Bitcoin and Ethereum, highlighted in our past-day piece, has had some effect.
Is a bottom in? Way too early to say. What’s for sure, however, is that prospects are looking technically more solid after today’s bounce, also led by a widespread rebound in the Tech Sector and Nasdaq (strongly correlated to Crypto). A new uptrend will be confirmed when daily volumes recover, and consistent ETF inflows support it. There have been only 5 weeks of net inflows in the past 20, so a green bar this week should surely strengthen the case for a more consistent turn higher.
Let’s dive right into the intraday charts and technical levels for Bitcoin (BTC), Ethereum (ETH) and Solana (SOL). Bitcoin did indeed respond to its double bottom at the $63,000. The current 10% move is a strong one, but will require a clean close above $70,000 in order to confirm a further breakout. Immediate price action will be an essential test: Consolidating close to the highs (between $68,000 to $70,000) will be a sign of strength. As short-term RSI levels contract, this would improve chances to break $70K. Rejecting below $66,500 (4H 50 MA) on the session would compromise the turn higher – This scenario holds lower probabilities on the immediate outlook.
Crypto traders are facing heightened scrutiny as Terraform Labs files a lawsuit against Jane Street, alleging insider trading and market manipulation tied to the LUNA episode that helped trigger the 2022 crypto downturn. The case underscores ongoing concerns about market integrity within the high-frequency trading segment of crypto markets. In July 2025, Indian regulators fined Jane Street $540 million for derivatives manipulation that allegedly generated up to $4 billion in profits, illustrating a broader pattern of regulatory action against potential abuses in digital asset markets. The developments raise questions about the role of major traders in crypto and whether further enforcement will target similar activity.
Market sentiment has been mixed, with observers noting notable price action and a recent double-bottom in Bitcoin and Ethereum. While a bottom is not confirmed, the technical backdrop suggests a shift could emerge if daily volumes rebound and ETF inflows stabilize, supporting a potential uptrend after recent volatility.
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