Bitcoin (BTC) faced renewed selling pressure on Thursday, trading below $73,500, as concerns mounted over institutional demand and index-related fund flows. The cryptocurrency declined over 5% this week, struggling to recover even as major US technology stocks rallied.
MSCI removes Strategy, triggers fund outflow fears
Investor confidence took a further hit after MSCI, a leading global index provider, announced plans to remove Strategy (MSTR) and several other firms from its widely tracked equity benchmarks. The changes will be implemented on December 1, prompting speculation that index-tracking funds could start adjusting their holdings by the November 30 cutoff date.
MSCI’s decision is expected to impact more than just Strategy’s stock price. Investment funds tied to MSCI benchmarks may have to scale back or liquidate their positions in the affected companies in order to stay aligned with their respective indexes.
This move brings the potential for substantial selling pressure on shares of Strategy, depending on the level of passive investment capital tracking the relevant benchmarks.
Metaplanet, a Tokyo-listed company with significant Bitcoin holdings, and UK-based uranium investment firm Yellow Cake, were also named among those impacted by the index changes.
MSCI is recognized for creating influential global equity indexes used by institutional investors and funds around the world to structure their portfolios.
Mini dictionary: MSCI, or Morgan Stanley Capital International, is a major provider of market indexes and analytics, offering benchmarks widely used by global investment funds to track stock performance.
MSCI’s removal of Strategy, Metaplanet, and Yellow Cake from key indexes could trigger billions in portfolio readjustments by large investment funds, raising the prospect of increased selling activity.
Bitcoin ETFs see $300 million in net outflows
Sentiment around Bitcoin suffered further as US spot Bitcoin ETFs experienced significant redemptions. Data from financial analytics provider SoSoValue showed spot Bitcoin ETFs recorded $299.90 million in net outflows on Wednesday, marking the fifth straight trading day of negative flows.
The ongoing streak of outflows signals diminishing institutional demand for regulated Bitcoin products. If withdrawals continue, pressure could build on Bitcoin prices, feeding concerns about sustained downside risk.
Persistent ETF redemptions and weakening institutional demand point to growing caution among large market participants, even as Bitcoin trades well below recent highs.
| ETF Flow (Wednesday) | Consecutive Negative Days |
|---|---|
| $299.90 million outflow | 5 days |
Bitcoin price outlook: $70,000 as key support
Technical analysis indicates a bearish trend for Bitcoin, which continues to spot downward movement below crucial daily Exponential Moving Averages (EMAs). As of Thursday, BTC trades near $73,490, maintaining this softer stance after its recent pullback.
The 200-day EMA is placed at $76,384, with the 100-day EMA at $77,411. Meanwhile, the 50-day EMA stands higher at $78,701—three resistance levels currently above the trading price.
Trading below these averages signals that sellers retain momentum. The daily Relative Strength Index (RSI) is near 34, approaching the key oversold threshold of 30, while the Moving Average Convergence Divergence (MACD) remains negative, underlining ongoing bearish sentiment.
Analysts identify $70,000 as the next major psychological support. Further declines toward this level could pose difficulties for bulls seeking to stabilize the price.
If Bitcoin reverses direction, recovery attempts are likely to face strong resistance at the 200-day, 100-day, and 50-day EMAs, with further upside potential only materializing if these barriers are surpassed. The next area of horizontal resistance lies ahead at $85,000.
| Support/Resistance | Current level |
|---|---|
| Immediate price | $73,490 |
| Support target | $70,000 |
| 200-day EMA | $76,384 |
| 100-day EMA | $77,411 |
| 50-day EMA | $78,701 |
| Major resistance | $85,000 |
