Cryptocurrency markets faced renewed downward pressure as Bitcoin slid to the $73,600 range, compounded by rising U.S. interest rate expectations and Strategy’s removal from global indexes.
Strategy Inc stock fell more than four percent in pre-market trading on Thursday after index provider MSCI confirmed it would drop the company from global benchmarks.
MSCI determined that Strategy functions closer to an investment fund than an operating business, following a previous proposal to remove firms holding over half their total assets in digital assets. Japanese firm Metaplanet Inc, ranked as the world’s second-largest corporate Bitcoin holder, also faces removal from the index.
Strategy previously warned that losing its place in MSCI indexes could trigger up to $2.8 billion in equity sell-offs while inflicting broader damage on the digital asset ecosystem. The company relies heavily on large-scale debt issuances and equity offerings to acquire Bitcoin, leaving its funding structure vulnerable to tightening capital conditions. Earlier in the year, the firm sold a portion of its digital treasury holdings to service mounting debt obligations.
Market analysts note that any recurrence of forced treasury liquidations could amplify spot market sell pressure. Cryptocurrencies have struggled to find a solid footing following sharp pullbacks through October and early November.
Higher-than-expected U.S. inflation data pushed investors to price in a more aggressive Federal Reserve rate path, with a potential hike arriving as early as December. Elevated interest rates diminish the appeal of non-yielding, highly volatile digital assets. Meanwhile, legislative concerns grew following a decisive victory for Democrats in the U.S. midterm elections, raising market anxiety regarding intensified federal oversight of the blockchain sector.
Trading desks reported broad weakness across alternative tokens amid a lack of positive catalysts. Ether fell 0.5 percent to $2,049.96, while Ripple dropped 0.8 percent. Solana recorded a 0.7 percent decline, alongside deeper pullbacks for Cardano and BNB at 1.5 percent and 1.3 percent respectively. Meme tokens also drifted lower, with Dogecoin and TRUMP both shedding over one percent on Thursday afternoon.
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