Bitcoin Price Falls Despite ‘Really Bullish’ MSCI Update: What Went Wrong?
Bitcoin dropped despite positive signals because MSCI changed rules that reduced passive demand for MicroStrategy stock.Summary
Bitcoin (BTC) fell by 2.30% on Wednesday, hitting a low near $91,550, despite seemingly bullish indicators like a large whale accumulation and MSCI's decision regarding crypto treasury companies. The price drop is primarily attributed to MSCI's announcement that it will no longer adjust index weightings to account for newly issued shares by companies like MicroStrategy (MSTR). Previously, passive funds tracking MSCI indexes were forced to buy newly issued shares used by MSTR to purchase Bitcoin, creating steady demand. The new rules limit MSTR's ability to raise capital for further Bitcoin purchases, leading analysts to suggest MSCI "fooled everyone." MSTR's stock subsequently dropped 4.10%. Technically, Bitcoin is holding above its 50-day EMA support around $91,700, but failure to maintain this level could lead to a drop toward the $88,000–$89,000 zone, aligning with the 20-day EMA and the lower trendline of its ascending triangle pattern.
(Source：Cointelegraph)