According to chart annotations, the initial trigger occurred on October 10. MSCI announced a proposal that could exclude Digital Asset Treasury companies, including and Metaplanet, from major global indexes. The announcement appeared near a local Bitcoin peak.
As MSCI indexes guide trillions in passive flows, the proposal raised concerns over forced selling by pension funds and ETFs. Minutes later, Bitcoin entered a sharp downtrend, beginning a period of sustained pressure that lasted through December.
From mid-October to November, Bitcoin illustrated a downtrend with lower highs and lower lows. The MSCI consultation period remained open until December 31, a time when the demand was weak and sentiment was declining. During this period, Bitcoin lost almost 31 percent of its market.
Chart accumulation from the last 45 days was marked by a flatter structure at the end of November and December. Bitcoin was trading between the mid-$80,000 and low-$90,000 range, with the rounded bottoms showing a slow absorption process taking place after a capitulation wick.
price surged recently, recovering near the $91,000 level. Bullish interpretation linked this movement to the January 5-6 events when Morgan Stanley applied for spot BTC ETFs, and MSCI announced that crypto-heavy companies would still be part of the index.
Also Read: