Bitcoin Updates Today: MSCI's Index Decision May Change MicroStrategy's Classification, Potentially Weakening Bitcoin's Integration into Mainstream Finance

Bitget App

Trade smarter

Bitget-RWA2025/11/21 01:40

By:Bitget-RWA

- JPMorgan warns MSCI excluding MicroStrategy from indices could trigger $11.6B in outflows, threatening its Bitcoin-linked valuation. - Strategy's stock now trades at 0.90x Bitcoin holdings (vs. 2.7x last year), reflecting index exclusion concerns over its 56% BTC portfolio. - MSCI evaluates if firms with >50% digital assets should stay in benchmarks, with decision due Jan 15 that could reclassify Strategy as an investment fund. - Active managers face reputational risks if Strategy is delisted, while its

JPMorgan Chase has cautioned that if

MSCI

decides to remove MicroStrategy (MSTR)—a company with significant exposure to

Bitcoin

—from major stock indices, it could lead to billions of dollars in passive investment outflows, putting the company’s value and liquidity at risk. The bank pointed to the index provider’s upcoming January 15 decision on whether firms focused on digital assets should continue to be included in traditional benchmarks as a critical juncture for

Strategy

, which currently holds more than $56 billion in Bitcoin. Should MSCI act independently, the company might see $2.8 billion in outflows, and if other index providers follow, total losses could reach $11.6 billion,

analysts led by Nikolaos Panigirtzoglou estimate

This alert comes as Strategy’s shares have lagged behind Bitcoin’s performance in recent months, with its market capitalization now trading at only a 0.90 premium over its Bitcoin assets—a steep drop from a 2.7 multiple a year prior,

based on market data

JPMorgan

attributes this mainly to rising fears of index exclusion, rather than a decline in Bitcoin’s value. The company’s presence in indices such as the Nasdaq 100 and MSCI USA has indirectly brought Bitcoin exposure into both institutional and retail portfolios,

a trend that could reverse if it is dropped

MSCI is currently assessing whether companies whose digital asset holdings exceed half of their total assets should continue to be part of equity benchmarks. Strategy, which functions primarily as a Bitcoin treasury and lacks a traditional revenue model, is a prime example of this category. The consultation period for this review ends December 31,

with a verdict expected by January 15

. Experts suggest that exclusion would mean Strategy is reclassified as an investment fund—a group not eligible for index inclusion—thereby undermining its present structure,

according to market analysis

Bitcoin Updates Today: MSCI's Index Decision May Change MicroStrategy's Classification, Potentially Weakening Bitcoin's Integration into Mainstream Finance image 0

The risks are not limited to passive investment vehicles. Active fund managers, though not required to mirror index changes, could still suffer reputational harm, increased borrowing costs, and diminished liquidity if Strategy is removed from indices. JPMorgan highlighted that the company’s stock price has recently fallen by more than 60% from its November 2024 peak—

underscoring these structural weaknesses

. Furthermore, its perpetual preferred shares have declined sharply, with yields on 10.5% notes

rising to 11.5%

Michael Saylor, the executive chairman of Strategy, has stood by the company’s Bitcoin-centric approach, envisioning a $1 trillion Bitcoin balance sheet to transform global finance. Yet, the current market climate—

with Bitcoin’s price down 30%

since October highs and $1 trillion wiped from the crypto market—has brought increased scrutiny to this strategy.

The outcome of the January 15 decision could prove pivotal. Should MSCI opt for exclusion, Strategy’s valuation may become entirely dependent on Bitcoin’s price, eliminating the premium that has previously driven its growth. This would challenge Saylor’s vision of using Bitcoin to launch new financial products,

such as Bitcoin-backed lending and insurance

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- A crypto whale lost $26.348M by partially liquidating 15x leveraged BTC and 3x leveraged ETH positions amid declining prices. - The whale's $250M portfolio faces $3.734M unrealized losses if liquidated, with a $65,436 WBTC liquidation threshold. - Broader market trends show $260.66M ETH ETF outflows and ETH/BTC prices below $2,800 and $87,000, worsening leveraged traders' risks. - A HyperLiquid user lost $4.07M from a 6x ETH long position, reflecting systemic leverage challenges as macroeconomic factors

Bitget-RWA•2025/11/21 03:54

Ethereum News Update: The Dangers of Leverage: Crypto Whale Suffers $26 Million Loss Amid Market Decline

Bitcoin Updates: U.S. Market Pessimism Contrasts with Asian Confidence as Bitcoin Drops Near $85,000

- Bitcoin's price fell to $85,000 in Nov 2025, down 7% in 24 hours and 20% monthly, driven by dormant wallet sales and bearish derivatives bets. - Surging sell pressure from inactive wallets and rebalanced derivatives toward puts highlight deteriorating market structure and liquidity. - Fed rate-cut uncertainty and regional divergences—U.S. bearishness vs. Asian buying—exacerbate volatility amid $565M in liquidations. - Analysts split on recovery: some see consolidation near $85K-$100K, others warn of a po

Bitget-RWA•2025/11/21 03:54

Bitcoin Updates: U.S. Market Pessimism Contrasts with Asian Confidence as Bitcoin Drops Near $85,000

Aave News Today: Aave’s High-Return Application Offers a Solution to Inflation’s Impact on Savings

- Aave , a top DeFi lending protocol, launched a consumer savings app offering up to 9% APY, competing with traditional banks and fintech platforms. - The app targets mainstream users with zero minimum deposits, real-time compounding, and $1M balance protection, aiming to simplify DeFi accessibility. - While outperforming traditional savings rates, Aave's insurance transparency and security history raise concerns amid crypto's volatile trust landscape. - This move reflects DeFi's neobank trend, with high-y

Bitget-RWA•2025/11/21 03:54

Aave News Today: Aave’s High-Return Application Offers a Solution to Inflation’s Impact on Savings

The PENGU USDT Sell Alert: Is This a Red Flag or Simply a Market Adjustment?

- PENGU USDT's sell signal highlights concerns over structural risks in stablecoin-backed crypto strategies amid volatility and regulatory shifts. - The token's 28.5% decline since October 27, coupled with weak technical indicators, reflects broader fragility in algorithmic stablecoins and leveraged positions. - Growing institutional adoption of asset-backed alternatives like USDC contrasts with PENGU's speculative NFT-driven model, which lacks robust collateral or compliance. - While Fed policy easing may

Bitget-RWA•2025/11/21 03:54