Bitcoin Fails to Rise Even As MSCI Green Flags MSTR Stock, Here’s Why

After the rejection at $94,000 levels, Bitcoin price remains on a downward trajectory, slipping another 3% today, under $90,000. Furthermore, BTC has failed to get enough buyers despite the MSTR stock getting a green light from the MSCI Index. The overall market sentiment remains cautious at this point, largely due to the absence of a major catalyst.

Bitcoin’s Gives Muted Reaction to MSCI Index News

The MSCI Index gave a green flat to Strategy (MSTR) and other digital asset treasury (DAT) firms, giving them a much-needed relief. However, Bitcoin has given a muted response to it due to a rule change by MSCI. This change alters the demand dynamics for crypto treasury firm stocks, said market expert Ted Pillows.

MSCI recently confirmed that it will not remove Bitcoin and crypto treasury companies from its indexes. However, the index introduced a new policy stating that any newly issued shares by treasury companies will no longer be automatically added to MSCI indexes.

Earlier, when firms like Strategy issued additional shares, all index-tracking funds within MSCI were required to purchase them to maintain index alignment. Per the update rules, the buying requirement is no longer mandatory.

Ted Pillows noted that this change reduces a steady source of passive demand for newly issued MSTR stocks. As a result, issuing additional shares becomes less attractive for treasury companies.

This shift explains why the market is not reacting positively to the MSCI index announcement. Although the threat of index exclusion no longer remains, the rule change means that index-led buying remains subdued.

Bitcoin Can See a Sideways Move For Few Months

CryptoQuant Chief Executive Officer Ki Young Ju stated that capital inflows into Bitcoin have slowed significantly. However, he believes that the probability of a BTC crash remains limited. Instead, he noted that Bitcoin could see a period of longer consolidation.

Ju noted that liquidity channels for Bitcoin are now far more diversified than in previous cycles. He added that increased long-term institutional participation has fundamentally altered past market dynamics. In previous market cycles, large holders sold into retail demand, which is no longer the case.

According to Ju, major corporate holders are unlikely to trigger significant sell-offs. He pointed to Strategy’s substantial Bitcoin holdings, saying such firms are not expected to liquidate large portions of their reserves.

Ju also observed that capital has recently rotated toward equities and commodities, rather than exiting risk assets entirely. As a result, he does not expect a sharp 50% or greater drawdown from Bitcoin’s all-time highs, unlike prior bear markets.

Instead, he believes that BTC could see sideways price action for a few months. Ju also cautioned shorts that are betting against a major drop.

Bitcoin ETFs Continue To Bleed

After a strong start to 2026, flows into spot Bitcoin ETFs have returned into the negative territory once again. On January 7, spot Bitcoin ETFs experienced a massive $486 million in outflows, led by Fidelity’s FBTC. On the other hand, BlackRock iShares Bitcoin Trust (IBIT) are reported $130 million in net outflows.

BlackRock’s IBIT recorded net outflows of 1,590 BTC, equivalent to approximately $130.8 million, during the latest trading session. Despite the outflows, trading activity remained elevated, with total daily volume reaching about $2.3 billion.