Bitcoin (BTC) dropped 2.3% Wednesday to near $91,550 despite index provider MSCI deciding to keep cryptocurrency treasury companies in its global benchmarks.
The decline followed MSCI's Tuesday announcement that firms like Strategy would remain in its indexes, reversing a proposal that had weighed on markets for months.
Strategy shares rose 6% in after-hours trading following the news, but had fallen 4.1% during Tuesday's session.
What Happened
MSCI announced January 6 it would maintain current treatment for digital asset treasury companies whose crypto holdings exceed 50% of total assets.
The decision ended three months of uncertainty after MSCI proposed such firms might face exclusion from its benchmarks.
Analysts had warned exclusion could trigger $10 billion to $15 billion in forced selling as passive funds divested.
MSCI said it will conduct broader consultations on treating non-operating companies with large crypto positions.
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Why It Matters
The MSCI news removed uncertainty that had pressured crypto markets since October.
Yet Bitcoin's Wednesday decline suggests other factors may drive recent market weakness, including profit-taking after early January gains.
Analysts questioned whether market swings stem from institutional actions or ordinary volatility.
Technical analysts warned Bitcoin's failure to hold above $94,000 could expose downside toward $88,000-$89,000.
Strategy holds 673,783 Bitcoin worth approximately $62 billion, representing 99% of its enterprise value.
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