Bitwise CIO Matt Hougan Rejects Jane Street Blame for Bitcoin Dip

Matt Hougan dismissed claims that Jane Avenue is orchestrating Bitcoin’s current decline, calling the downturn “a basic crypto winter.”

Matt Hougan, chief funding officer at Bitwise, has pushed again on claims that buying and selling agency Jane Avenue is behind Bitcoin’s current slide, writing on X on February 26 that the downturn is “a basic crypto winter,” not a coordinated assault.

His feedback come as lawsuits and viral threads revive outdated fears about market manipulation simply as Bitcoin is buying and selling over 46% under its all-time excessive.

Conspiracy Claims Collide With ETF Mechanics

Hypothesis intensified after experiences emerged that Terraform Labs’ chapter administrator had sued Jane Avenue in a Manhattan federal court docket, accusing the agency of utilizing insider data earlier than the Could 2022 Terra-Luna collapse.

In accordance with the grievance, Jane Avenue withdrew 85 million TerraUSD from Curve’s 3pool minutes after Terraform eliminated 150 million UST, a sequence the go well with claims accelerated the $40 billion collapse. Jane Avenue has denied the allegations, calling the case a “determined try” to recuperate losses and blaming Terraform’s administration for the failure.

On the identical time, some crypto analysts, together with Bull Principle, alleged that Jane Avenue runs a “10 AM” promote algorithm to push Bitcoin decrease and revenue from derivatives.

Bull Principle additionally pointed to an interim order from India’s Securities and Trade Board accusing Jane Avenue entities of expiry-day index manipulation between January 2023 and March 2025, alleging hundreds of crores in illegal good points. The case is ongoing, and the agency has appealed.

Nonetheless, Hougan dismissed the narrative as misplaced. “The conspiracy theories are wild,” he wrote, arguing that Bitcoin is down as a result of traders unwound lengthy positions, decreased leverage, and rotated capital elsewhere.

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The Bitwise CIO additionally amplified colleague André Dragosch’s evaluation of intraday Bitcoin efficiency because the ETF launch in January 2024. Dragosch’s knowledge countered the viral 10 AM slam narrative by displaying pronounced weak spot round midnight ET, pointing to non-U.S. buying and selling hours because the precise vulnerability interval.

Macro strategist Alex Krüger additionally echoed Hougan’s skepticism, calling the Jane Avenue concept “yet one more viral and flawed conspiracy concept.” He famous that foundation merchants and approved contributors (APs) merely shut gaps between ETFs, futures, and spot markets.

“Too many doomer narratives and conspiracy theories on the lookout for villains circulating proper now,” Krüger posted. “Traditionally, that’s the type of sentiment you see at bottoms.”

Structural Questions Linger Past the Blame

The controversy has additionally revived debate about ETF plumbing. ProCap CIO Jeff Park wrote on February 25 that issues are much less a few single agency and extra about how APs function beneath regulatory exemptions that permit in-kind creations and redemptions.

In concept, APs can hedge ETF publicity with futures as a substitute of shopping for spot Bitcoin straight, which critics argue may boring spot demand.

Not one of the lawsuits or regulatory filings thus far set up coordinated misconduct in Bitcoin markets. Nonetheless, the overlap between massive quantitative corporations, derivatives methods, and ETF mechanics has fueled suspicion throughout a downturn.

For Hougan, the reason is less complicated. Bitcoin’s four-year cycle, leverage resets, and shifting investor priorities are sufficient to clarify the pullback.

“This can be a basic crypto winter and there shall be a basic crypto spring,” he wrote. “Folks need somebody responsible — I get it — however the actuality is way extra boring than that.”