Why The Market Crashed On October 10, And Why It’s Struggling to Bounce
NegativeCryptocurrency
- The cryptocurrency market experienced a significant downturn on October 10, primarily due to MSCI's proposed reclassification and potential exclusion of Digital Asset Treasury (DAT) companies, which has created a structural overhang affecting market recovery. Analysts have noted that this has contributed to the ongoing struggles in crypto prices since the crash.
- The implications of MSCI's potential actions are profound for companies like MicroStrategy, as analysts predict that exclusion from major equity indices could lead to substantial outflows, estimated between $2.8 billion and $8.8 billion, further destabilizing the market.
- This situation reflects broader tensions within the cryptocurrency sector, where fears of forced selling due to index changes are mounting. The ongoing scrutiny of companies heavily invested in digital assets highlights the fragile state of the market, as stakeholders react to potential shifts in institutional support and regulatory landscapes.
— via World Pulse Now AI Editorial System
