Bitcoin hovered near $63,000 after hitting an intraday low of $62,470, remaining virtually flat over 24 hours and leaving seven-day losses at 2.6%.
Key Takeaways
Bitcoin fell below $63,000 as spot ETF outflows topped $131 million.MSCI proposed rules targeting firms like Strategy with over 50% non-operating assets.MSCI will decide on Oct. 16, with potential November removals dimming bitcoin’s year-end outlook.Bitcoin dipped below $63,000 for the second consecutive day on Friday, with the decline deepening in early trading.
The cryptocurrency initially appeared to consolidate around $63,400 hours after falling to $62,912 on Thursday. However, a sell-off shortly after midnight dragged the price to $62,670 before it recovered to trade just below $62,800.
Shortly after 8 a.m. EST, bitcoin began descending again, reaching an intraday low of $62,470. A subsequent relief rally helped it reclaim the $63,000 threshold. As of 1:20 p.m. EST, the cryptocurrency was trading just above $63,000, virtually unchanged over the previous 24 hours.
In the derivatives market, the volatility triggered significant liquidations for overleveraged long positions. According to Coinglass data, out of $32 million in leveraged bitcoin positions liquidated in 24 hours, long positions accounted for $26 million—about $8 million less than on Thursday. Across the broader cryptocurrency market, long liquidations totaled $94 million, compared to $72.5 million in short liquidations.
Strategy Responds to MSCI’s ProposalMarket observers note that heavy digital asset treasury adopters, including Strategy and Metaplanet, fail the proposed criteria and face potential removal during upcoming index rebalancings. While inclusion in major equity benchmarks previously allowed passive index funds and ETFs to automatically acquire these stocks, their removal could trigger forced institutional selling.
“Digital assets are assets. Index providers should measure markets, not decide which assets companies are allowed to own. MSCI’s proposal puts it out of step with regulators, markets, and its own customers. Bitcoin doesn’t need MSCI. Neither does Strategy,” the company stated.
MSCI’s public consultation runs through Sept. 30, with a final decision slated for Oct. 16. If approved, index removals would begin as early as November—a timeline that could unleash sustained institutional selling and sever a critical bridge for corporate adoption, effectively dimming bitcoin’s prospects for a year-end rally.
