Big news: Bitcoin fell less than 1%, but Strategy’s stock plunged nearly 10% in a single day 📉
At Friday’s (October 16) U.S. market close, MSTR’s report card looked like this:
🔹 Closed at $136.83, down from $151.29 the previous day—a 9.56% drop. It hit an intraday low of $134.11, falling more than 10% at one point.
🔹 Trading volume was about 1.44 times the usual level.
🔹 On the same day, the largest spot Bitcoin ETF fell just 0.94%.
The trigger was a new rule approved by MSCI the day before: companies like Strategy, which primarily hold crypto, could be removed from its indexes. According to the timeline, the list will be announced on November 11, and any removals will take effect at the November 30 close.
How much might passive funds have to sell? Based on JPMorgan’s earlier estimates, an MSCI removal alone could prompt about $2.8 billion in index-related selling. If other indexes follow suit, that figure could rise to around $8.8 billion.
Some perspective is warranted: Bitcoin mining stocks fell by about as much as MSTR that day, so the decline was largely sector-wide. The extra trading volume looks more like some investors positioning themselves ahead of the MSCI changes. Saylor, for his part, was quite unfazed earlier this week, saying that the funds MSCI controls are “relatively limited” and that the decision “doesn’t matter that much” to them.
An old question is back on the table: if you want exposure to Bitcoin, buying MSTR is not the same kind of risk as buying BTC directly or a spot ETF.
Which would you choose?
#Bitcoin rebounds to $82,000 #BTC #ETH
At Friday’s (October 16) U.S. market close, MSTR’s report card looked like this:
🔹 Closed at $136.83, down from $151.29 the previous day—a 9.56% drop. It hit an intraday low of $134.11, falling more than 10% at one point.
🔹 Trading volume was about 1.44 times the usual level.
🔹 On the same day, the largest spot Bitcoin ETF fell just 0.94%.
The trigger was a new rule approved by MSCI the day before: companies like Strategy, which primarily hold crypto, could be removed from its indexes. According to the timeline, the list will be announced on November 11, and any removals will take effect at the November 30 close.
How much might passive funds have to sell? Based on JPMorgan’s earlier estimates, an MSCI removal alone could prompt about $2.8 billion in index-related selling. If other indexes follow suit, that figure could rise to around $8.8 billion.
Some perspective is warranted: Bitcoin mining stocks fell by about as much as MSTR that day, so the decline was largely sector-wide. The extra trading volume looks more like some investors positioning themselves ahead of the MSCI changes. Saylor, for his part, was quite unfazed earlier this week, saying that the funds MSCI controls are “relatively limited” and that the decision “doesn’t matter that much” to them.
An old question is back on the table: if you want exposure to Bitcoin, buying MSTR is not the same kind of risk as buying BTC directly or a spot ETF.
Which would you choose?
#Bitcoin rebounds to $82,000 #BTC #ETH