Podcast host Scott Melker said Bitcoin’s Friday decline reflected rising risk aversion more than Strategy’s possible exclusion from MSCI indexes, arguing that market-wide pressure better explained the drop.
Bitcoin traded at $68,163 at 7:35 p.m. ET Friday (00:35 UTC Saturday), down 4.17% over 24 hours. Melker said investors were shifting away from volatile assets toward steadier holdings, leaving Bitcoin more exposed when markets come under strain. The view fits a broader pattern explored in coverage of Bitcoin’s ties to macro forces.
MSCI revised its index rules to favor companies with operating businesses and stable revenue, potentially putting companies that mainly hold assets at risk of exclusion. Strategy was among the companies that could be affected.
A possible exclusion could lead index-tracking funds to sell Strategy shares, but it would not require the company to sell Bitcoin from its holdings. JPMorgan estimated related forced fund outflows at $2.8 billion, below Strategy’s typical daily trading volume. The index change concerns Strategy’s shares; it does not itself trigger sales of the company’s Bitcoin.
Enna Lee
Enna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to [email protected].
