MSCI is considering removing Strategy Inc from its major equity indexes due to the company’s substantial Bitcoin holdings. Financial experts warn that this move could instill fear among small investors and increase market uncertainty. The impact would extend beyond Strategy Inc, potentially affecting Bitcoin and other leading cryptocurrencies such as Ethereum, Ripple (XRP), and Cardano (ADA). Bitcoin, the world’s most prominent and valuable cryptocurrency, has experienced significant price volatility, posing challenges for investors. Recent months have seen a sharp decline in Bitcoin’s price, which has also influenced the valuations of other major cryptocurrencies. MSCI, a global organization that develops stock indexes widely regarded by international investors as performance benchmarks, could cause negative effects on stock prices if companies are removed from its indexes, as large investors and funds may reduce their holdings. The cryptocurrency market is already unstable due to factors including government regulations, global economic conditions, and technical issues. A further decline in Bitcoin’s price could adversely affect Ethereum, XRP, Cardano, and other significant tokens, representing a considerable risk to the market. Going forward, investors need to exercise caution and closely monitor market developments to protect themselves from sudden fluctuations. Additionally, implementing regulated government policies and transparent laws is essential to reduce uncertainty in the cryptocurrency market.
Source: coindesk
