🚨 JANE STREET LAWSUIT SPARKS “DIGIT 10” THEORY IN CRYPTO MARKETS
The recent legal filing against Jane Street for alleged market manipulation in crypto and options has traders buzzing. Observers note that the daily 10 AM liquidity dumps paused immediately after the lawsuit went public, fueling speculation of a “cease and desist” effect.
The lawsuit claims Jane Street used sophisticated algorithms and insider-level order flow data to front-run retail liquidations. Analysts tie this to the so-called “Digit 10” pattern: major events like the Luna crash on May 10, 2022 ($40B wiped out), the $19B liquidation on Oct 10, 2025, and the recurring 10 AM daily dumps, dubbed the “Jane Window.”
Institutional tactics, such as asymmetric access to order books and targeting stop-loss clusters, often give firms like Jane Street, Citadel, and Jump Trading an edge over retail traders.
Many argue the broader crypto bull run remains constrained until these practices are restricted.
📸 bulltheory
THE MARKET CAN RALLY AND STILL PUNISH LATE LEVERAGE.
Standard Chartered’s latest call is basically: don’t rule out a deeper pullback before the rebound.
They’re floating a scenario where:
📉 $BTC retraces to ~$50K
📉 $ETH retraces to ~$1.4K
📈 Then rebounds later this year
And it’s not just Bitcoin & Ethereum -- they reportedly reduced price targets for several majors ( $SOL, $XRP, $BNB, $AVAX), which tells you they’re thinking the next phase could be more about clearing excess risk than nonstop upside.
If you’re trading: volatility is the feature.
If you’re investing: plan your entries, size properly, and don’t let one wick change your thesis.
History doesnt repeat but this Gemini prediction of past events correlating to current and future events is straight up nuts. Must read. Discussing on The Office Space.
Anyone argues with this chart is probably in denial.
The Teal line is the 50% market maker moving average. (LQL MMMA) and clears the last blue 25x leveraged traders.
The assets were sent to market makers at 1pm yesterday and the flush executed at 00:00 UTC. This affects not only leveraged traders, but Microstrategy, and all of crypto. This is called wash trading and will be illegal once Market Structure laws are passed.
Note: With panic selling that this type of move induces the price drops further but will recover to these levels. But these were the targetted levels by the exchange and together they profited another $1b in liquidations and spawned another 1000 narratives as to "why" this happened.
BITCOiN CRASHING:
The everything bubbles are bursting….
Q: Am I selling?
A: NO: I am waiting.
Q: Why aren’t you selling?
A: The cause of all markets crashing is the world is in need of cash.
A: I do not need cash.
A: The real reason I am not selling is because the problem…. The world is deeply in debt…. and my bet is “ The Big Print” as described in Lawrence Lepards book…. “The Bug Print”is about to begin…. which will make gold, silver, Bitcoin, and Ethereum more valuable…..as fake money crashes.
Q: Could Lawrence and myself be wrong?
A: Yes
I do not give investment advice.
I share with you what I am doing.
This is why my previous X is about “Birds of a Feather study together.
Most of my friends do need cash…. So their panic is less.
Simply said…..if you are fearful and need cash….as most of the world does…. You may want to sell your best assets and go to cash.
MSS PiGGY’s financial wisdom:
I follow the financial advice of the Muppets’ Miss Piggy who advises
“The key to money management is to always manage to have a lot of money.”
In Rich Dad Poor Dad, Rich dad called this “Cash Flow” from assets such as real estate, oil wells, cattle , and private investments.
I do not trust stocks or bonds but if you do….like Warren Buffet…do what is best for you.
Miss Piggys advice is sound advice and why Birds of a Feather attend financial seminars and study together.
Be careful.
Learn from your mistakes if you are panicking and short of cash.
I ‘ve panicked many times and learned priceless personal financial lessons not taught in schools of traditional “get a job “ education.
And I painfully learned Miss Piggy’s lesson on money management, when I ran out of cash.
Yet the lessons are priceless although painful. Those painful lessons have made me a rich man….with assets that cash flow cash as I write about in Rich Dad Poor Dad and teach in my Cashflow Boardgame.
The game Cashflow teaches by players making mistakes.
Mistakes are how humans are designed to learn. Unfortunately schools punish students for making mistakes. Small wonder there are so many educated poor people.
Please take care, keep learning….and thank you for following me on X.
$LQL Theory (ongoing series of posts)
The dollar markets are manipulated. It is a game, a casino game. You are playing it if you "leverage trade".
Scalpers: Traders betting the price will go up or down on a small timeframe. Always using leverage. Small percentage gains required (1-5% under leverage) using high leverage or large positions with low leverage.
Swing Traders: Traders betting the price will go up or down over a few hours or days. Using lower leverage or "spot" trading meaning buying and selling the asset. Looking for gains around 5-20%. (Advanced swing traders will use high leverage with high margin)
Hodlers: Traders that buy the asset at the lows and hold for several months/years. Looking for 100% gains.
How the LQL chart is drawn by the casino. Lines are drawn at levels where bets have been placed. These lines represent the liquidation price of those bets. The casino will move the price there and extract the money from the gamblers. Red lines are highly overleveraged bets. High risk. They require the asset price need to move only 1-1.5% to liquidate the gamblers. This is how the market is manipulated. To extract liquidity from overleveraged gamblers ("traders").
Rule 1: No red lines survive - the price will be brought down to flush these red lines. Use the strategy. Never trade the red line area the win rate is 0.01%. The price will always flush the red lines.
We are in a bullish cycle. The price will always recover from the deep flush of the red and yellow lines and especially the blue lines. You are looking to extract liquidity from the casino on that recovery delta. Thats the trade. Flushes happen all the time on many timeframes. There is always another flush to trade.
Update: We are automating it in development now. Until then manage yourself. The Teal line is the Market Maker Moving Average. We invented this term. It is the median of the previous market make (market maker move, markup markdown). This is the strategy with highest hit rate right now. Until it changes it is the best trade in crypto. You are extracting the delta no more. Exit in profit.
Enter when others get liquidated.
Moving forward this series will move to Subscriber Only posts.
Creating a crash for #Binance is very easy. How?
The tokens in your wallet only appear in the app — behind the scenes they’re all in #Binance wallets. Here’s how it happens.
First, the exchange opens SHORT positions on hundreds of pairs at once using private trading bots. Then, through those bots, they sell the tokens you’re holding in a matter of minutes. For example, #FARTCOIN fell from $0.70 to $0.10. They close the short at the bottom and take profit. They replace the tokens they sold of yours with their own at very low prices. When a sudden drop causes billions of dollars in liquidations, that money ends up in their coffers. As long as #Binance exists, there won’t be a crypto bull market — this pressure and this fraud will continue.
Is there no protection?
The only remedy is to move funds to alternative exchanges or withdraw them to wallets.
—
#Binance için bir Crash yaratmak çok kolay. Nasıl mı?
Sizin cüzdanınızdaki tokenler sadece uygulamada görünüyor arka planda hepsi #Binance Walletlarında. Şimdi gelelim bu olay nasıl oluyor.
İlk borsa özel yazılım trade botları ile SHORT işlem açıyor aynı anda yüzlerce pariteye. Ardından sizin hold ettiğiniz tokenleri bu botlar aracılığı ile birkaç dakikada satıyorlar. Örnek #FARTCOIN 0.7$ den 0.1$ geldi fiyat. Shortu en dipte kapatıp kar elde ediyorlar. Çok düşük fiyattan sizin olan sattıkları tokenleri yerine koyuyorlar. Ani düşüşte milyarlarca $ liq olunca onların kasasına giriyor. #Binance varoldukça kriptoya boğa gelmeyecek bu baskı ve dolandırıcılık devam edecek.
Bunun önlemi yok mu?
Tek çâre alternatif borsalara fonları çekmek yada cüzdanlara çekim yapmak.
1/ Since a lot of people are waking up to see their perps positions closed and wondering what the hell “Auto-Deleveraging” means, here’s a quick and dirty primer.
What is ADL? How does it work? And why does it exist?
Liquidation Levels - 12 noon Oct 7th
Tip: Wait to long at the white numbers at the bottom of the range or when all the blue lines are cleared.
This LQL chart will help you time entries, set stop losses, take profits and see exactly where we are at any time.
The markets are controlled by the offshore casinos and are manipulated to liquidate and force out leverage traders. Anyone that does not understand that or is in denial is not helping you.
https://t.co/XBYCVOYoy9
https://t.co/i5t4LrY8xo
https://t.co/dgh5L2QKlz
“If I put $100 in Bitcoin in 2010 I’d have $2.8B now.”
No.
If you bought $100 of Bitcoin in 2010 and watched it go to:
$1k → $100k → $1.7M
and did nothing
Then watched $1.7M go to $170k
and still did nothing
Then watched $170k go to $110M
and still did nothing
Then watched $110M wither to $18M
and still did nothing
Then watched $18M surge to $390M
and still did nothing
Then watched $390M deteriorate to $85M
Then watched $85M climb to $1.6B
and still did nothing
Then watched $1.6B shrink to $390M
and still did nothing
Then watched $390M surge to $2.8B
and then for some reason finally decided to do something…
Then yes, $100 in 2010 would be worth $2.8B today.
How to trade the liquidation levels.
These are @binance Leverage Traders Liquidation Levels.
I post them hourly on my feed @martypartymusic and post the live broadcast.
THIS IS THE MOST IMPORTANT CHART IN CRYPTO TRADING. Learn to use it.
The Red lines are high leverage (100x+). The Yellow are medium (50-100x) the Blue are low leverage 25-50x). When the price hits these lines the trader is liquidated if they did not exit, add margin or stop out. Use these levels to trade crypto. Forget traditional TA it is a retail trap.
Follow the liquidity in crypto.
-Where the top blue lines end is Short Setup A
-Where the upper yellow lines meet the upper blue lines is Short Setup B
-Where the upper red lines meet the upper yellow lines is Short Setup C
-Where the upper red lines meet the upper yellow lines is Long Setup C
-Where the lower yellow lines meet the lower blue lines is Long Setup B
-Where the lower blue lines end is Long Setup A
IMO: ALWAYS WAIT FOR SETUP A.
ALWAYS USE A STOP LOSS.
EXIT IN PROFIT.
MOVE STOP LOSS IN THE MONEY AS SOON AS POSSIBLE.
NFA.
What are In-Kind Creations and Redemptions in crypto ETFs and why is it so important?
Crypto ETF Authorized Participants (APs), typically large financial institutions, deposit the underlying cryptocurrency (e.g., Bitcoin) with the ETP issuer to receive newly created ETP shares in return. For example, an AP delivers 1 $BTC to the ETF issuer and gets ETF shares equivalent to that value.
In-Kind Redemptions: APs return ETP shares to the issuer and receive the equivalent amount of the underlying cryptocurrency (e.g., Bitcoin) back. For example, an AP redeems ETF shares and gets 1 BTC in return.
This contrasts with cash creations/redemptions, where APs use cash to buy or sell ETP shares, and the issuer handles the purchase or sale of the underlying crypto.
Without in-kind creations and redemptions, crypto ETPs could face persistent price discrepancies, higher costs, and reduced investor confidence, undermining their appeal as a regulated way to gain crypto exposure.
This mechanism is especially crucial in the volatile crypto market, where price swings can be significant.
In-kind creations and redemptions are critical to crypto Exchange-Traded Products (ETPs) because they ensure the ETP's market price closely tracks the net asset value (NAV) of the underlying cryptocurrency assets, maintaining efficiency and liquidity.
Here’s why they matter:
Price Alignment (Arbitrage Mechanism): In-kind creations and redemptions allow authorized participants (APs)—typically large financial institutions—to exchange the underlying cryptocurrency (e.g., Bitcoin) or cash equivalent for ETP shares, or vice versa. If the ETP's market price deviates significantly from its NAV, APs can arbitrage the difference by creating or redeeming shares, bringing the price back in line. This keeps the ETP trading close to the value of its underlying assets.
Liquidity and Efficiency: The in-kind process enables APs to deliver or receive the actual cryptocurrency, which minimizes transaction costs and avoids cash-based inefficiencies. This ensures the ETP remains liquid and cost-effective for investors, as APs can handle large transactions without significantly impacting the market.
Tax Efficiency: In many jurisdictions, in-kind transactions (swapping crypto for shares or vice versa) are not considered taxable events, unlike cash transactions. This reduces tax liabilities for the ETP and its investors, making it a more attractive investment vehicle.
Market Stability: By allowing APs to create or redeem shares based on demand, in-kind mechanisms help stabilize the ETP’s supply and demand dynamics. This prevents extreme premiums or discounts, ensuring fair pricing for retail and institutional investors.
Operational Simplicity: In-kind processes leverage the existing infrastructure of crypto custody and trading, streamlining operations for ETP issuers. APs deliver or receive crypto directly, reducing the need for the ETP issuer to manage cash conversions or market purchases.
Understanding the "CME Gap".
The Chicago Mercantile Exchange or @CMEGroup is the largest regulated futures exchange in the world and trades Bitcoin, Ethereum, Solana and XRP. The exchange is open NY stock market times. Currently, Bitcoin futures on CME trade Sunday through Friday, from 6 p.m. to 6 p.m. EST daily. It has recently announced it will begin trading 24/7 365 but no official date has been set.
Until then, when the market closes on Friday and reopens on Sunday, a "gap" is created in the price because Bitcoin futures continue trading on offshore unregulated exchanges like #Binance and now on semi- regulated exchanges like #Coinbase. So over the weekend the price moves.
Typically, but not always, the @CMEGroup gap will be filled. Meaning the price will be manipulated back to cover the gap.
Yesterday the manipulators got to $115300 which is the top of the gap (see below), but the buying pressure was too strong and they could not fill the gap.
There is a non zero probability they will try to fill this gap again to $114300 but the defense of this gap last night was impressively bullish.
Bitcoin bears and cry babies are out in force at despair levels not seen since the 08 financial crash, while:
- BlackRock has called Gold a “shiny rock”.
- Larry Fink has completely seriously looked the Davos reporter in the face and said “nobody should be surprised if Bitcoin is $700,000 a coin.”
- The United States of America has announced a Strategic Bitcoin Reserve.
- The Tariff drama uncertainty is about to end this week.
- @saylor has tapped tens of Billions of Dollars of capital to buy Bitcoin from a $300T fixed income market.
- Companies around the world are coming out to announce Bitcoin Treasury Strategies.
- Government Funds (Abu Dhabi) are buying Bitcoin.
- BlackRock has said Bitcoin could replace the US Dollar as reserve.
- The entire “C Suite” of the US Government hold Bitcoin, love Bitcoin, promote Bitcoin.
- The FED has reversed QT policy and is preparing for liquidity injection.
This is Bitcoin Derangement Syndrome and you should avoid talking to anyone with it.
Stay focused.
HODL.
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To use AI for technical analysis (TA), try TrendSpider or Londinia. TrendSpider offers cloud-based charting, iOS/Android apps, and automated trendlines for accurate trades—download free from https://t.co/JXNKipwk0q. Londinia provides AI-driven analysis summaries, price objectives, and indicators—access via https://t.co/UFQJNmsxfi. Both help detect trading opportunities and save time.
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it will not cost taxpayers a dime.
It is estimated that the U.S. government owns about 200,000 bitcoin; however, there has never been a complete audit. The E.O. directs a full accounting of the federal government’s digital asset holdings.
The U.S. will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value. The Reserve is like a digital Fort Knox for the cryptocurrency often called “digital gold.”
Premature sales of bitcoin have already cost U.S. taxpayers over $17 billion in lost value. Now the federal government will have a strategy to maximize the value of its holdings.
The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies have no incremental costs on American taxpayers.
IN ADDITION, the Executive Order establishes a U.S. Digital Asset Stockpile, consisting of digital assets other than bitcoin forfeited in criminal or civil proceedings.
The government will not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings.
The purpose of the Stockpile is responsible stewardship of the government’s digital assets under the Treasury Department.
PROMISES MADE, PROMISES KEPT
President Trump promised to create a Strategic Bitcoin Reserve and Digital Asset Stockpile. Those promises have been kept.
This Executive Order underscores President Trump’s commitment to making the U.S. the “crypto capital of the world.”
I want to thank the President for his leadership and vision in supporting this cutting-edge technology and for his rapid execution in supporting the digital asset industry. His administration is truly moving at “tech speed.”
I also want to thank the President’s Working Group on Digital Asset Markets — especially Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick — for their help and support in getting this done. Finally Bo Hines played a critical role as Executive Director of our Working Group.