Bitcoin Faces $1T Crash Risk as MSCI Crypto Rules Loom

Bitcoin Faces Price Drop and ETF Inflows Key to Recovery Amid MSCI Index Controversy

  • Bitcoin’s price has dropped from $126,000 to around $90,000 since October.
  • Michael Saylor warns of serious consequences if his company Strategy is removed from MSCI indices due to new crypto holding rules.
  • MSCI may bar companies with more than 50% of assets in crypto from its benchmarks, with a decision expected by January 15.
  • Standard Chartered lowered its Bitcoin Price forecast for 2025 from $200,000 to $100,000, citing a slowdown in corporate bitcoin buying.
  • ETF inflows are expected to be the main driver for bitcoin price increases moving forward, as treasury company purchases slow down.

Bitcoin prices have fallen sharply from their October peak of $126,000 to about $90,000. Michael Saylor, executive chairman of the bitcoin-buying firm Strategy, has warned of “chaos, confusion,” and “profoundly harmful consequences” if the company is removed from the global equity indices maintained by MSCI due to proposed new rules. The decision on these rules is expected by January 15.

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MSCI is considering a proposal to exclude companies with more than 50% of their total assets in cryptocurrency from its global equity benchmarks. In a 12-page letter, Saylor and Strategy CEO Phong Le urged MSCI to reject the rule, arguing it would be short-sighted and detrimental to investors and the broader economy.

A JPMorgan analysis estimates that if MSCI adopts the proposal, Strategy could face outflows up to $8.8 billion, especially if other index providers follow MSCI’s lead. This risk has created concern over a potential bitcoin price crash.

Adam Back, CEO of bitcoin developer Blockstream, told Yahoo Finance that bitcoin adoption is still in early stages and that eventually all companies may hold bitcoin as a treasury asset. Meanwhile, Standard Chartered has cut its bitcoin price target for the end of 2025 from $200,000 to $100,000, citing an expected end to bitcoin purchases by treasury companies like Strategy.

According to Geoff Kendrick, head of digital assets research at Standard Chartered, bitcoin treasury companies have bought nearly one million bitcoin worth about $100 billion this year but likely will stop buying, which means future price gains depend primarily on purchases by bitcoin exchange-traded funds (ETFs). ETFs currently hold about 1.5 million bitcoin valued at roughly $1.4 billion and are expected to continue buying into 2026.

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David Hernandez, a crypto investment specialist at 21shares, noted that for bitcoin prices to rise above the $100,000 level, ETF inflows must overcome selling pressures around $94,500. He stated, “If spot ETF inflows strengthen as expected now that the cost of capital is falling, that could become the spark that transforms caution into momentum and drives bitcoin back above the $100,000 psychological barrier.”

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