Bitwise CIO Matt Hougan Rejects Jane Avenue Blame for Bitcoin Dip

Matt Hougan dismissed claims that Jane Avenue is orchestrating Bitcoin’s latest 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 latest 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His feedback come as lawsuits and viral threads revive outdated fears about market manipulation simply as Bitcoin is buying and selling over 46% beneath its all-time excessive.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 courtroom, accusing the agency of utilizing insider info earlier than the Might 2022 Terra-Luna collapse.

In line with the criticism, Jane Avenue withdrew 85 million TerraUSD from Curve’s 3 pool 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 get well losses and blaming Terraform’s administration for the failure.

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

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

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

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

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

“Too many doomer narratives and conspiracy theories searching for villains circulating proper now,” Krüger posted. “Traditionally, that is the form of sentiment you see at bottoms.”

Structural Questions Linger Past the Blame

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

In idea, APs can hedge ETF publicity with futures as an alternative of shopping for spot Bitcoin instantly, which critics argue might 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 companies, derivatives methods, and ETF mechanics has fueled suspicion throughout a downturn.

For Hougan, the reason is easier. 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 guilty — I get it — however the actuality is much extra boring than that.”