Why The Market Crashed On October 10, And Why It’s Struggling to Bounce
Overview
The cryptocurrency market has been struggling to recover following a significant crash on October 10. A key factor contributing to this ongoing downturn is the proposed reclassification and potential exclusion of Digital Asset Treasury (DAT) companies from MSCI indices.
What Happened
On October 10, the cryptocurrency market experienced a notable crash. This event has been linked to a major structural concern: MSCI’s proposal to reclassify and possibly exclude Digital Asset Treasury (DAT) companies from its indices. Dr. Avtar Sehra, founder and CEO of STBL, highlighted that this reclassification is creating uncertainty in the market, which is impeding a sustained recovery in crypto prices.
Why It Matters
The MSCI’s actions regarding DAT companies could have significant implications for the cryptocurrency market. The potential exclusion from prominent indices may affect the visibility and investment attractiveness of these companies. This situation has contributed to the ongoing difficulties in the market, as investors remain cautious amid structural changes.
Impact on the crypto market
- The proposed reclassification of DAT companies introduces uncertainty, impacting investor confidence.
- The potential exclusion from MSCI indices could diminish the appeal of DAT companies to institutional investors.
- The market has struggled to bounce back since the October 10 crash, reflecting ongoing concerns related to the proposed changes.
- Investors may remain hesitant to engage with the market until clarity on the MSCI situation is achieved.
- The structural overhang from these developments is likely to influence market sentiment in the near term.
Updated: 12/2/2025, 8:30:10 PM
