MSCI has removed Strategy from its indexes, and the verdict is now official. What does it mean for Bitcoin? 📰
Bitcoin Magazine reports MSCI will remove Strategy, the largest corporate Bitcoin holder, from the MSCI USA Index as of the close of 30 November, after a new screen classified the company as a non operating issuer, and the same review also removes Metaplanet from the MSCI Japan Small Cap Index. 📊 JPMorgan analysts estimated the exclusion could drive about 2.8 billion dollars of passive selling in Strategy shares, and the stock closed at 122.35 dollars, up 1.06 percent, then slipped 1.51 percent to 120.50 dollars in after hours trading. My reading is that this is a stock flow event, not a Bitcoin sale, because nothing in the rules forces Strategy to sell its 850,364 Bitcoin, but the forced selling into 30 November can still drag sentiment while Bitcoin sits below the company average cost of 75,456 dollars.
Does the MSCI removal push Bitcoin down, or is the selling already priced in? 🤔
Follow for more trades.
#Crypto #Bitcoin #FuturesTrading #TradingSignals #MSCI
Bitcoin Magazine reports MSCI will remove Strategy, the largest corporate Bitcoin holder, from the MSCI USA Index as of the close of 30 November, after a new screen classified the company as a non operating issuer, and the same review also removes Metaplanet from the MSCI Japan Small Cap Index. 📊 JPMorgan analysts estimated the exclusion could drive about 2.8 billion dollars of passive selling in Strategy shares, and the stock closed at 122.35 dollars, up 1.06 percent, then slipped 1.51 percent to 120.50 dollars in after hours trading. My reading is that this is a stock flow event, not a Bitcoin sale, because nothing in the rules forces Strategy to sell its 850,364 Bitcoin, but the forced selling into 30 November can still drag sentiment while Bitcoin sits below the company average cost of 75,456 dollars.
Does the MSCI removal push Bitcoin down, or is the selling already priced in? 🤔
Follow for more trades.
#Crypto #Bitcoin #FuturesTrading #TradingSignals #MSCI
