Bitcoin Price Declines Despite Positive MSCI Update

Bitcoin Faces Downward Trend

The price of Bitcoin fell by 2.30% on Wednesday, hitting an intraday low of nearly $91,550. This drop occurred despite promising signals, including the accumulation of $280 million in BTC linked to whales and MSCI's decision to keep crypto treasury companies in its benchmark indices.

MSCI Changes Affect Passive Demand

In a Tuesday announcement, MSCI stated that it would no longer adjust index weights to reflect newly issued shares. Previously, when companies like Strategy issued new shares to raise capital for Bitcoin purchases, passive funds following MSCI indices were obligated to buy a portion of those shares, creating consistent demand. Under the new rules, this automatic buying is no longer applicable, reducing a key source of passive demand for Strategy's shares.

Impact on Bitcoin Companies

Michael Saylor, the leader of the company, may face limitations in his ability to raise capital for additional Bitcoin purchases. Analyst Crypto Rover commented that "MSCI has fooled everyone" with this announcement. "For those who think it's a minor issue, Strategy issued shares worth over $15 billion in 2025," he wrote, adding that if they attempt something similar in 2026, MSTR might face a brutal collapse due to the lack of passive buying.

Technical Outlook for Bitcoin

Technically, Bitcoin has pulled back after testing the upper line of its ascending triangle formation. Currently, Bitcoin is hovering around its 50-day exponential moving average, which has acted as short-term support. However, if it fails to maintain momentum above this level, there could be risks of a decline toward the $88,000–$89,000 range.