TL;DR
- Morgan Stanley’s Bitcoin ETF filing coincided with major market events, sparking questions about possible price manipulation.
- MSCI’s October announcement to remove certain digital asset companies from its indexes triggered a near $18,000 drop in Bitcoin.
- When MSCI reversed its decision in early January, shortly after Morgan Stanley’s ETF filing, many investors debated whether institutional actions influenced crypto market movements.
Bitcoin experienced notable volatility over the past three months, drawing attention from analysts and investors. The timing of Morgan Stanley’s ETF filing and MSCI’s index announcements has raised discussions about potential institutional influence on crypto prices. Market participants are closely monitoring how these developments could set precedents for future crypto-linked ETFs and investment strategies.
🚨DID MORGAN STANLEY PULL OFF THE BIGGEST CRYPTO MANIPULATION?
The sequence of Bitcoin’s October crash and January recovery looks like a planned setup, and the data supports it.
Let’s go through it 👇
1) OCTOBER 10: THE TRIGGER
On October 10, MSCI, originally a Morgan Stanley… pic.twitter.com/oyw0oKf66f
— Bull Theory (@BullTheoryio) January 7, 2026
MSCI Announcement Triggered October Crash
On October 10, MSCI proposed removing companies holding significant Bitcoin reserves, such as MicroStrategy and Metaplanet, from its global indexes. Bitcoin fell nearly $18,000 within minutes, and the broader crypto market lost more than $900 billion in value. MSCI indexes guide trillions in passive investment flows, meaning index-linked funds and pension plans could be forced to sell crypto holdings. The announcement immediately pressured prices and affected both institutional and retail investors. Observers noted that sudden policy shifts in major indexes can have ripple effects across derivative markets and futures trading.
Three-Month Uncertainty Window Pressured Prices
The consultation period for MSCI’s proposed changes lasted until December 31. Analysts say this three-month window discouraged passive investors from opening new positions and prompted index-linked funds to prepare for potential mandatory sales. Bitcoin fell approximately 31% during this time, marking one of the steepest quarterly declines since 2018. Altcoins experienced even larger losses, amplifying overall market pressure. The period also saw increased discussions around on-chain accumulation patterns, as some long-term holders took advantage of the volatility.
Morgan Stanley ETF Filing Sparks Reversal
Bitcoin began recovering in early January, gaining 8% in five days from $87,500 to $94,800. On January 5, Morgan Stanley filed for spot Bitcoin, Ethereum, and Solana ETFs. Hours later, MSCI announced it would not proceed with the planned removals. The timing has prompted discussion about whether institutional activity played a role.
Analysts note the sequence: MSCI threatens removals, prices drop, uncertainty persists, Morgan Stanley files ETFs, MSCI reverses course. The recovery period also highlighted renewed interest from hedge funds and private wealth managers, suggesting institutional confidence in crypto products is increasing.
While no direct evidence links Morgan Stanley’s ETF filing to market moves, the sequence of events has drawn attention from crypto observers.
