Bitcoin Price Falls Despite ‘Really Bullish’ MSCI Update: What Went Wrong?

Bitcoin (BTC) fell 2.30% on Wednesday, hitting a low near $91,550.

The fall came despite signs of bullishness, including a whale-related $280 million BTC stock movement and MSCI's decision to keep crypto-treasury companies in its benchmark indices.

MSCI limits passive demand for strategic stocks

In Tuesday's announcement, MSCI said it would no longer adjust index weights to reflect newly issued shares.

Previously, when companies like Strategy issued new equity to raise capital for Bitcoin purchases, passive funds that track MSCI indexes were required to buy a portion of those shares, creating constant demand.

Under the new rules, this automatic purchase will no longer apply, which will reduce the need for strategic inventory.

Simply put, the Michael Saylor-led company may face limits on its ability to raise capital for further Bitcoin purchases, with analyst Crypto Rover saying in their announcement that “MSCI fooled everyone.”

“For those who think this is a small deal, Strategy has issued $15 billion in new stock by 2025,” he wrote in a Wednesday post.

In the year If they try to do the same thing in 2026, MSTR will face a catastrophic crash due to homogenous buying.

MSTR's stock price was down 4.10% on Tuesday.

Technicals warn that the price of BTC will lose $90,000 again

From a technical point of view, Bitcoin has pulled back after testing the top upside triangle pattern.

As of Wednesday, BTC was held above the 50-day exponential moving average (50-day EMA, red wave) at $91,7000, which served as recent support.

However, a failure to sustain momentum above this level could expose the downside risk to the $88,000–$89,000 zone in January, which aligns with the 20-day EMA (the green wave) and the triangular lower trend line.

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A further break below the lower boundary of the triangle could result in an extended downward trip to $79,450, a target measured after subtracting the triangle's higher height from the breakout point near $88,300.

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