Bitcoin and Ethereum Surge as Jane Street Lawsuit Shakes Crypto Market

Street lawsuit

The crypto market has finally caught a break on Wednesday, February 25, 2026. Bitcoin has been going through a brutal phase, and on February 24, BTC closed around $64,080 and dipped below the $63,000 mark during intraday trading. Most top cryptocurrencies also had similar downturns.

However, on February 25, the crypto market saw signs of recovery as Bitcoin reclaimed the $65,000 mark. The top ten coins are currently in the green zone. The market cap has increased to $2.26 trillion, suggesting that investors were actively purchasing the token at a lower price. Heavy selling pressure has reduced this week. As traders are moving back into positions, momentum has shifted from the bears.

Highlights

  • The crypto market experiences a surge by 3% as Bitcoin crosses $65K, after weeks of selling pressure.
  • Jane Street lawsuit sparks debate over the firm systematically suppressing Bitcoin prices after 10 AM.
  • Although the market rebounds, panic remains as resistance levels remain low.

Bitcoin Current Price

Bitcoin (BTC) price has increased by 3.35% in the last 24 hours, reaching $65,408. The prices were pushing higher and briefly touched $66,300. BTC has a market cap of $1.3 trillion and $40.5 billion in trading volume.
Stabilizing sentiment of Bitcoin prices supported overall recovery across the crypto market. Major altcoins also experience a short-term recovery. The next critical level is at $2.30 trillion, and a decisive move above the resistance level would support a bullish momentum.
Ethereum price also recorded a surge of 4.89%, reaching $1,913. Major altcoins like Solana and XRP also saw significant gains.

Jane Street Lawsuit Timing

On February 23, 2026, the bankruptcy administrator for Terraform Labs, Todd Snyder, filed an 83-page lawsuit against quantitative trading firm Jane Street Group LLC. The firm was accused of insider trading and market manipulation that allegedly accelerated the $40 billion collapse of the Terra-Luna in May 2022.

The allegations still remain unproven, and the timing has sparked fierce debates across crypto communities. It is mainly because, for nearly two months, traders had been complaining about an episode termed as “10 AM dump.” It is a recurring pattern that Bitcoin faces a sharp sell-off around 10 AM market hours.

After several weeks of going through the same pattern, Bitcoin did not have a major sell-off. So, many raised the question whether this has been a recurring pattern or just a pure coincidence. Some markets also argued that they have seen a strange pattern around the number 10.

Luna collapsed on May 10, the daily dump occurred at 10 AM, and a major $19 billion liquidation occurred in the tenth month, October 2025. However, these factors coincided with zero evidence. Investor confidence increased after Bitcoin and the overall market saw a major price surge.

Markets Still Appear Fragile

Crypto prices increased from a long slumber after the US President Donald Trump addressed Congress on the night of February 24. Earlier this week, the crypto market took a hit after Trump invoked his emergency powers to push a 15% global tariff, and his move was blocked by the Supreme Court. The policy uncertainty had affected the market, triggering a downward trend. However, today’s price bounce is considered a recovery after fresh bets were placed ahead of Trump’s address.

However, despite the bounce, the broader market sentiment remains cautious. The Fear & Greed Index still sits at 11, signalling extreme fear. The average RSI is in neutral territory after weeks of oversold readings. Bitcoin is trading below major resistance levels, and Ethereum is still recovering from the recent losses. Nevertheless, today’s price rally has created short-term optimism in the market.