#CryptoMarketRebounds

The crypto market is once again buzzing with a familiar debate: has the infamous “10 a.m. dump” pattern finally ended, and is growing legal pressure on market makers the real reason behind the recent stability? Over the past few weeks, traders noticed a repeated intraday selloff around the U.S. market open, often triggering stop-loss cascades and short-term panic. But with the latest rebound across major assets like Bitcoin, Ethereum, Dogecoin, and GateToken, many are questioning whether that pattern has structurally changed.

The so-called “10 a.m. dump” refers to a recurring wave of selling pressure that frequently appeared shortly after the U.S. equities market opened. Because crypto trades 24/7, liquidity dynamics often shift when Wall Street participants enter the arena. Algorithmic trading desks and high-frequency firms tend to rebalance positions at that time, sometimes causing sharp, temporary downside volatility. Retail traders, seeing red candles form quickly, often interpreted this as coordinated manipulation by large market makers.

However, attributing every selloff to deliberate price suppression oversimplifies how liquidity works. Market makers provide two-sided quotes. Their goal is to capture spreads and manage inventory risk—not necessarily to drive price direction. That said, when order books are thin and leveraged positions are crowded, even routine hedging flows can create exaggerated moves. In such environments, a relatively small burst of sell orders can trigger cascading liquidations, amplifying the drop and reinforcing the “pattern.”
Recently, regulatory scrutiny around digital asset trading practices has intensified globally.

Authorities have increased focus on transparency, wash trading, insider coordination, and potential conflicts of interest between exchanges and liquidity providers. While no single enforcement action can be directly linked to ending an intraday pattern, the broader atmosphere of oversight may be encouraging more cautious behavior among institutional players. Firms operating under tighter compliance expectations often reduce aggressive short-term tactics that could attract unwanted attention.

At the same time, structural market conditions have shifted. Open interest in perpetual futures had become heavily skewed to the short side during the recent correction. When too many traders lean in one direction, the market becomes vulnerable to a squeeze. Instead of the typical 10 a.m. selloff, we recently witnessed the opposite: a sharp upward move that liquidated short positions. This suggests that positioning, not legal fear alone, played a central role in reversing the intraday dynamic.

Another important factor is liquidity depth. As total crypto market capitalization stabilizes and spot ETF flows normalize, order books become thicker. Deeper liquidity reduces the impact of sudden bursts of orders. If buy-side demand is strong enough to absorb early-session selling, the familiar dump simply fails to materialize. In that case, what traders interpret as the “end of manipulation” may actually be the natural balancing of supply and demand.

It’s also worth noting that markets evolve. Patterns that become widely recognized tend to lose effectiveness. Once traders anticipate a 10 a.m. drop, they adjust strategies—either front-running it or fading it. This behavioral adaptation alone can disrupt a recurring intraday move. Markets are reflexive; when enough participants expect the same outcome, the probability of that outcome changes.

So, has the 10 a.m. dump truly ended due to legal pressure on market makers? The more nuanced answer is that multiple forces are at play. Increased regulatory scrutiny may be encouraging more disciplined liquidity provision. Positioning imbalances have shifted, turning potential selloffs into short squeezes. Liquidity conditions have improved, dampening volatility spikes. And trader awareness has altered behavioral patterns.

The current rebound across major tokens signals that confidence is gradually returning. Whether this marks the beginning of a sustained bullish phase or merely a temporary structural reset will depend on macro liquidity, ETF inflows, and derivatives positioning in the coming weeks.
For now, one thing is clear: the market is less predictable than any single narrative suggests.

Instead of focusing solely on alleged manipulation, disciplined traders should monitor liquidity depth, funding rates, open interest, and macro catalysts. In crypto, patterns don’t disappear because of one reason they evolve because the ecosystem itself evolves.