MSCI Ruling Could Impact Crypto Market and Bitcoin’s Future

Bitcoin ([BTC](https://holder.io/coins/btc/)) has experienced a significant drop, hitting an eight-month low of $80,000, marking the worst-performing week since November 2022.

The downturn began on October 10 with a sharp liquidation event that erased nearly $21 billion in minutes, leading to ongoing market fears.
Ran Neuner from Crypto Banter suggests Digital Asset Treasuries (DATs), including firms like Strategy (MSTR), have been key buyers in this market cycle. These firms aim for inclusion in major indices, which would trigger purchases by passive index trackers.
MSCI is evaluating whether companies holding primarily crypto assets should be categorized as "companies" or "funds," affecting their eligibility for passive indexing. A decision is expected by January 15, 2026.
If classified as funds, firms like Strategy could be removed from indices, forcing divestments by pension funds and reducing their market influence.
The future of the crypto market hinges on this ruling, with potential sell-offs if unfavorable or a renewed bull market if favorable.

As of now, Bitcoin has slightly recovered to $84,880 but remains 32% below its all-time high of $126,000 reached earlier in October.