Bitcoin Lawsuit Impact: Why the 10 a.m. Price Slam Disappeared from Crypto Markets

A curious pattern in Bitcoin trading has recently ceased, sparking analysis among crypto traders. For a significant period, Bitcoin (BTC) often experienced a noticeable price dip around 10 a.m. Eastern Time, dubbed the daily "price slam." This phenomenon has now vanished, with many observers linking its disappearance directly to a massive lawsuit filed by the New York Attorney General (NYAG) against major crypto entities, including Gemini, Genesis, and Digital Currency Group (DCG). The lawsuit alleges fraud and seeks restitution for investors, which analysts suggest has disrupted certain automated or coordinated trading strategies that may have been causing the predictable downward pressure. The absence of the slam indicates a potential shift in market dynamics, reducing a source of short-term volatility. Experts note that while the lawsuit itself creates regulatory uncertainty, its immediate effect has been to remove a consistent selling pattern, potentially allowing for more organic price discovery in the Bitcoin market. The situation highlights how regulatory actions can have immediate and unintended consequences on crypto market microstructure.