Bitcoin News Today: Institutional Exclusion Plan Sparks Crypto Backlash: JPMorgan in Crosshairs

Bitcoin Community Demands JPMorgan Boycott After MSCI Plans to Remove MicroStrategy From Indices

The Bitcoin community and supporters of MicroStrategy (MSTR) have launched a coordinated boycott of JPMorgan Chase & Co., escalating tensions after the bank shared news of a potential MSCI decision to exclude crypto-focused companies from its global indices. The backlash, fueled by influential figures like real estate investor Grant Cardone and Bitcoin advocate Max Keiser, highlights growing frustration over perceived threats to the crypto sector's financial stability.

The proposed exclusion has sparked immediate backlash. Cardone, a prominent Bitcoin proponent, announced he had withdrawn $20 million from JPMorgan Chase and vowed to sue the bank over unrelated credit card disputes, framing the action as part of a broader boycott. Keiser amplified the call, urging supporters to "crash JP Morgan and buy Strategy and BTC", further energizing online sentiment. Meanwhile, MicroStrategy founder Michael Saylor has defended the firm's business model, arguing that it is a "Bitcoin-backed structured finance company" rather than a passive holding vehicle.

JPMorgan's role in disseminating the MSCI news has drawn particular ire. The bank's analysts noted that exclusion from key indices would damage MicroStrategy's credibility, hinder capital raising, and exacerbate its liquidity challenges. This comes as MicroStrategy's debt-laden balance sheet faces mounting pressure: its preferred shares now trade at discounts, and yields on its 10.5% securities have risen to 11.5% amid waning demand.

MSCI Inc., one of the world's largest index providers, is consulting on a policy change that would exclude companies with 50% or more of their assets in digital currencies from its benchmarks, including the MSCI World and MSCI USA indices. JPMorgan analysts warned in a research note that such a move could trigger up to $8.8 billion in passive outflows for MicroStrategy, whose $59 billion valuation is heavily tied to its inclusion in major indices. The firm's stock has plummeted 67% since its November 2024 peak, mirroring Bitcoin's 30% decline and eroding the premium once enjoyed by its shares.

The potential fallout extends beyond MicroStrategy. Analysts warn that a forced sell-off of shares by index-tracking funds could depress Bitcoin prices, creating a negative feedback loop for crypto treasury companies. MSCI's decision, set for January 15, 2026, has also reignited debates about the criteria for index inclusion, with markets like Indonesia already revising float rules to align with international standards.

MicroStrategy's inclusion in the Nasdaq 100 since December 2024 has been a lifeline, attracting passive capital flows that now face disruption. If MSCI proceeds with its plan, active managers may follow suit, accelerating a shift toward more conventional assets. The company's CFO has cited "multiple levers" to manage liquidity, including at-the-market equity sales, but analysts remain skeptical about its ability to withstand prolonged Bitcoin weakness below $70,000.

The controversy underscores broader tensions in the crypto sector, where innovation clashes with institutional norms. As the January 15 deadline approaches, investors are bracing for a pivotal test of the sector's resilience-and a potential reshaping of how digital assets are valued in traditional markets.