The Reason Behind the October 10 Market Plunge and Its Ongoing Struggle to Recover

On October 10, a seemingly uneventful announcement was made by index provider MSCI, suggesting the reclassification of Digital Asset Treasury companies (DATs) such as MicroStrategy as fund-like entities. This proposal poses a threat to their eligibility for inclusion in major equity benchmarks. Analysts have raised concerns that this move could lead to significant passive outflows amounting to billions of dollars by February 2026, thereby structurally impacting a crucial leveraged buyer of Bitcoin. This development helps shed light on the continuous weakness observed in the market following the crash triggered by liquidation in October.