Bitcoin Experiences Decline Amid MSCI Index Changes

According to Cointelegraph, Bitcoin (BTC) experienced a 2.30% decline on Wednesday, reaching an intraday low near $91,550. This downturn occurred despite positive indicators such as a significant $280 million BTC accumulation by a whale and MSCI's decision to maintain crypto treasury companies in its benchmark indexes. MSCI announced on Tuesday that it would no longer adjust index weightings to account for newly issued shares. Previously, when companies like Strategy issued new equity to fund Bitcoin acquisitions, passive funds tracking MSCI indexes were required to purchase a portion of those shares, ensuring consistent demand. The new rules eliminate this automatic buying, potentially limiting Strategy's ability to raise capital for further Bitcoin purchases. Analyst Crypto Rover commented that MSCI's announcement might have misled investors, noting that Strategy issued over $15 billion in new shares in 2025. He warned that if Strategy attempts a similar move in 2026, it could face a significant stock price drop due to the absence of passive buying. On Tuesday, MSTR's stock price fell by 4.10%. From a technical standpoint, Bitcoin retreated after testing the upper trendline of its current ascending triangle pattern. As of Wednesday, BTC remained above its 50-day exponential moving average (50-day EMA) at approximately $91,700, serving as short-term support. However, failing to maintain momentum above this level could lead to a downside risk toward the $88,000–$89,000 range in January, aligning with the 20-day EMA and the triangle's lower trendline. A further breakdown below the triangle's lower boundary might result in an extended downtrend toward $79,450, a target calculated by subtracting the triangle's maximum height from the potential breakdown point near $88,300. This article does not offer investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making decisions. While Cointelegraph aims to provide accurate and timely information, it does not guarantee the accuracy, completeness, or reliability of any information in this article. Forward-looking statements in this article are subject to risks and uncertainties, and Cointelegraph will not be liable for any loss or damage arising from reliance on this information.