BiyaPay Analyst: Bitcoin Continues to Fall, Exacerbating MicroStrategy's Risk of MSCI Removal

On November 21st, Bitcoin continued to decline, which triggered market concerns about the systemic risk of MicroStrategy (MSTR), the world's largest "Bitcoin treasury" company. The latest data from JPMorgan Chase indicates that retail investors have sold approximately $4 billion worth of Bitcoin and Ethereum spot ETFs in November, reaching a new high for the year. Meanwhile, global stock ETFs have witnessed a net inflow of $96 billion this month, showing a clear trend of "selling crypto and buying stocks." As MSTR's stock price performed significantly worse than Bitcoin, its valuation premium shrank rapidly, shifting market focus to a key risk: major indices such as MSCI are considering excluding it. If it is excluded during the review on January 15th next year, MSCI alone could trigger $2.8 billion in passive selling. If the Nasdaq and Russell follow suit, the outflows could potentially reach $8.8 billion. BiyaPay analysts pointed out that MSTR has gradually transitioned from being a "Bitcoin proxy asset" to a "potential risk point in index constituents," and short-term volatility may continue to increase. In the current market environment, compared to having indirect exposure through holding stocks, investors are more inclined to trade directly in US stocks, Hong Kong stocks, and futures using USDT through BiyaPay to accurately capture market trends. Meanwhile, hedgers can also utilize BiyaPay's low-cost trading mechanism to flexibly switch between traditional and crypto assets.