Bitcoin climbed back above the $66,000 mark on Wednesday, posting a 2.5 percent gain as traders debated what triggered the latest move. The rebound came amid renewed chatter on social media about possible institutional selling pressure from US trading giant Jane Street, a claim the firm has previously dismissed.

Data from TradingView showed BTC/USD rising to $66,300 on Bitstamp before easing into consolidation. At the time of writing, Bitcoin was still up more than 2 percent on the day, with market participants divided over whether the move was technical in nature or linked to changes in institutional activity.

Social Media Theory Targets Jane Street

The latest speculation centers on allegations that Jane Street had been conducting coordinated algorithmic selling of Bitcoin at 10 am Eastern Time on a daily basis. According to the theory circulating online, this pattern allegedly applied sustained downward pressure on BTC prices beginning in October 2025.

The claims gained traction as Jane Street faces legal action from Terraform Labs, the collapsed crypto firm behind the Terra ecosystem. In its complaint, Terraform Labs accuses the trading company of engaging in market manipulation that affected digital assets during the 2022 bear market. That year, Bitcoin eventually bottomed near $15,600 in the fourth quarter.

Supporters of the 10 am selling theory argue that if Jane Street was forced to halt or modify its trading strategy due to legal scrutiny, the absence of that systematic selling could explain Bitcoin’s recent bounce.

However, Jane Street has rejected the accusations, calling them baseless and opportunistic. The firm maintains that it did not manipulate crypto markets.

Traders Push Back on the 10 AM “Price Slam” Claim

Not everyone in the crypto community is convinced. Several analysts argue that attributing months of price action to a single trading firm oversimplifies market dynamics.

BTC/USD four-hour chart. Source: Jelle/X

Among the skeptics is crypto commentator Wise Advice, who publicly questioned the credibility of the theory. Critics note that Bitcoin trades around the clock across global exchanges, making it difficult for one firm to control direction for an extended period without broader market participation.

Some traders pointed out that the supposed daily 10 am pattern lacks consistent data to support the claim. They argue that while large firms can influence short term volatility, sustained trends typically require macroeconomic drivers, liquidity shifts, and broader sentiment changes.

Resistance at $66K Remains Key

From a technical standpoint, Bitcoin’s push toward $66,000 is significant. Popular trader Jelle highlighted that the zone represents both former local range lows and a four hour trend resistance level.

According to his analysis, a decisive flip of $66,000 into support could open the door for short term relief. Until then, he cautioned that the broader trend remains under pressure and traders should avoid fighting prevailing momentum.

The market’s cautious tone reflects lingering uncertainty. Despite the bounce, many participants are waiting for confirmation through stronger volume and sustained follow through.

Thin Order Books Add Fuel to Volatility

Another factor behind the sharp move may be liquidity conditions. Keith Alan, co founder of trading resource Material Indicators, said that a razor thin order book on exchanges amplified the rebound.

He explained that overhead sell liquidity had been pulled ahead of US President Donald Trump’s State of the Union address, leaving less resistance in the order book. With fewer sell walls in place, even moderate buying pressure was enough to push prices higher.

Low liquidity environments can exaggerate price swings in both directions. When order books are thin, relatively small market orders can move price more dramatically than usual.

Data from CoinGlass showed that total crypto liquidations over the past 24 hours reached $333 million. Short positions accounted for $213 million of that figure, indicating that bearish traders were caught off guard by the upward move.

Short liquidations can further accelerate rallies, as forced buy orders add to upward pressure. This dynamic may have contributed to Bitcoin’s quick surge toward $66,000.

Market Awaits Clear Direction

While the rebound has lifted short term sentiment, uncertainty remains. Traders continue to weigh technical resistance, liquidity conditions, and broader macro factors alongside the swirling rumors about institutional activity.

Whether the move marks the beginning of a stronger recovery or simply a relief bounce within a larger range remains to be seen. For now, the $66,000 level stands as the immediate battleground, with both bulls and bears watching closely.