recent exterior Galaxy Research’s Alex Thorne, on the podcast “What Bitcoin Did,” dismissed the idea that Bitcoin’s price crashed due to a prank by notorious quantitative trading firm Jane Street.
At the same time, he believes that Wall Street’s negative opinions about Bitcoin are “true but false.”
“Twitter compatible”
In the wake of the Terraform lawsuit accusing the New York-based company of insider trading, Bitcoiners have found a new villain.
They started claiming that Jane Street was behind the crypto winter of 2022. Some even speculate that the trading giant is the reason why the price of Bitcoin is currently below $150,000.
Some claimed that the company, which acts as an authorized participant in the Spot Bitcoin ETF, was running algorithms that constantly suppressed the price of Bitcoin. Some people noticed that the price of BTC continued to drop around 10am ET (US stock market open).
Bitwise advisor Jeff Park recently said: said Certain regulatory loopholes give Jane Street a unique advantage, giving it the freedom to create short shares in ETFs, he said.
However, several academic theories have dismissed this theory as unfounded, and Thorne is in their camp.
Mr Thorne said recent conspiracy theories were “a direct response to Twitter” and were nothing more than “manufactured” controversies.
“You know, there are market-making firms, quantitative trading firms. They’re probably trading neutral, delta-neutral, very often in these types of trades. So they’re doing basis trades, or some kind of arbitrage or hedging, right? … So what do you think is the actual incentive for them to suppress prices?” Thorne said during an appearance on the podcast.
