THE REAL REASON BEHIND THE OCTOBER 10TH CRYPTO CRASH IS FINALLY OUT.
And its much bigger than what people thought.
For weeks, traders kept asking the same question:
"Why did the market collapse so violently on Oct 10 when there was no macro event, no ETF news, no exchange failure, nothing?"
Now we have the missing piece and it explains a lot.
1) MSCI quietly dropped a major update on Oct 10
On the same evening the crash began, MSCI released a consultation note that almost nobody in crypto paid attention to.
MSCI said they are reviewing how to classify companies whose main business involves accumulating Bitcoin or digital assets.
Key proposal:
- If digital assets = 50% or more of a companys total assets
- And the companys operating activity resembles a digital asset treasury
→ That company can be excluded from MSCI global indexes.
This directly puts several Bitcoin-heavy companies at risk, especially MicroStrategy.
2) Why this matters
If MSCI excludes these companies:
Index funds are forced to sell
Funds tracking MSCI indices must remove these stocks.
They do not get to choose. This is literal forced institutional selling.
MicroStrategy becomes a primary target
If MSTR is labeled fund-like, MSCI indexed funds could be forced to reduce or exit positions.
When MSTR dumps → BTC reacts immediately
Like it or not, $MSTR is treated as a leveraged Bitcoin proxy.
If the stock shows weakness: confidence drops → Bitcoin correlation increases → retail panic accelerates → liquidations start hitting → BTC falls harder.
3) How this connects to the Oct 10 crash ?
The market was already fragile:
- Trump new tariffs
- Weak Nasdaq
- High leverage in BTC markets
- Fear of 4-year cycle top
When MSCIs note dropped, it added a new type of structural risk that traders did not expect.
The fear was simple:
"If MSTR or similar companies get removed from MSCI, large funds will be forced to sell, what happens to Bitcoin then?"
This fear hit right into an already stressed market.
The result: one of the biggest liquidation waves in crypto history.
4) But theres another layer: JPMorgans timing
3 days ago, JPMorgan published a bearish report highlighting the same MSCI risks, right when:
- MSTR was weak
- BTC was weak
- Liquidity was thin
- Sentiment was fragile
This amplified panic, causing a 14% dump in a few days.
And if you know JPMorgans history, you know this pattern:
They speak bearish when prices are weak.
They accumulate assets when retail is scared.
They publish bullish notes near tops.
Their timing is never random.
This is not a secret. This is standard Wall Street behavior.
5) Is JP Morgan manipulating the market?
Not illegally. But strategically, yes.
This is how big institutions operate:
- Push fear when liquidity is low
- Trigger panic
- Let weak hands sell
- Accumulate at a discount
- Turn bullish later
Theyve done it with metals. Theyve done it with bonds. They are doing it with Bitcoin.
This is not a cartel. This is Wall Street strategy.
6) Now the plot twist: Michael Saylor responds publicly
Right when MSCI fears started dominating headlines, Saylor dropped a detailed clarification:
"MicroStrategy is not a fund, not a trust, not a holding company. It is a publicly traded operating company with a $500M software business and a Bitcoin based treasury strategy."
He also highlighted:
- 5 new digital credit instruments ($STRK, $STRF, $STRD, $STRC, $STRE)
- $7.7B notional value issued this year
- Stretch ($STRC), the first Bitcoin backed variable yield credit instrument
- Ongoing software operations and financial product innovation
His message was simple:
"We are not passive holders. We are builders. We are innovating. Index labels do not define us."
7) So what does all this mean for the market?
✔ Oct 10 crash was NOT random
It aligns exactly with MSCIs consultation release.
✔ Forced-selling fear created liquidity stress
Traders panicked because they assumed index funds might eventually dump large positions.
✔ JPMorgan amplified the fear
Their bearish note came at the perfect moment to shake markets further.
✔ Saylor finally cleared the air
His statement explained why MicroStrategy is fundamentally different from what MSCI is describing.
✔ But uncertainty remains
Final MSCI decision comes on 15 January 2026.
Policy goes into effect February 2026.
Between now and then? The market may price in more volatility.
Final Take:
The market did not crash because of a single event.
It crashed because one unexpected structural risk hit an already fragile system.
And large institutions used that moment to shape sentiment.
But the long term picture is simple:
Bitcoin adoption unchanged.
Corporate interest unchanged.
Saylor remains on track.
Institutions still building.
ETF flows will stabilize.
Liquidity cycles will return.
MSCI classification will not stop Bitcoin.
Fear creates opportunity. Narratives create volatility. But fundamentals do not change.
This is why the Oct 10 crash was violent and why it will be remembered as a technical panic, not a fundamental breakdown.
https://x.com/BullTheoryio/status/1992611696855114043🚨 FRUSTRATED JP MORGAN OUT OF CONTROL NOW 😡
Strike CEO Jack Mallers says JP Morgan shut down all his banking accounts with ZERO warning.
No reason.
No details.
Just concerning activity
and we cant tell you.
Tether CEO even replied:
Bitcoin will survive.
These banks will turn to dust.
They can shut accounts
But they cannot stop crypto. 🔥
https://x.com/TheMoneyApe/status/1992926269357646000