Bitcoin News Today: Mystery Deepens as S&P 500 Leaves Bitcoin Giant in the Dark

MicroStrategy (MSTR), a major corporate holder of Bitcoin under the leadership of Michael Saylor, was notably excluded from the S&P 500 index despite fulfilling key eligibility criteria such as market capitalization, liquidity, and public float. This decision has generated significant investor concern and debate. The company’s stock dropped nearly 3% in after-hours trading, slipping below $330 and raising fears of a further decline toward $300. Analysts have highlighted that the omission from the S&P 500 may deprive MSTR of substantial inflows from ETFs and index funds, potentially affecting its ability to secure new capital and maintain credibility on Wall Street, despite its substantial Bitcoin holdings exceeding $70 billion [1].

Meanwhile, Robinhood Markets (HOOD) and AppLovin were announced as new additions to the S&P 500 index. Robinhood’s inclusion is seen as a major milestone for a company that became a popular platform for retail investors during the pandemic. Its stock rose nearly 7% in after-hours trading following the announcement, surpassing $108 per share and marking a more than 150% increase year-to-date. This development is expected to enhance the company’s visibility with mainstream investors and reinforce its credibility among institutional stakeholders [2]. AppLovin’s inclusion further reflects the index committee’s focus on expanding representation of digital asset-oriented firms, underscoring the growing influence of this sector in the broader market.

The S&P 500’s reshuffling, which occurs on the first Friday of the last month of the third quarter, saw Emcor Group also added to the index. The decision to exclude MicroStrategy has raised questions about the methodology of the S&P 500 committee, with some observers suggesting that discretion or non-financial considerations may have played a role. Bloomberg analyst Eric Balchunas commented that the S&P 500 committee’s decisions have increasingly appeared to deviate from a rules-based approach, likening its behavior to that of a “shadow active fund.” He also noted parallels to past delays in the inclusion of companies like Tesla and Microsoft [3].

The market’s attention now turns to the Federal Reserve’s upcoming monetary policy meeting on September 17, where the possibility of rate cuts could influence investor sentiment toward risk assets like Bitcoin and MSTR stock. Analysts and traders are closely monitoring whether a shift in monetary policy might help offset the negative sentiment from the S&P 500 decision. The broader market remains in a state of flux, with U.S. equities oscillating between gains and losses amid uncertainty over the impact of recent tariff policies and their effects on economic growth [4].

The S&P 500 index itself has experienced a strong start to the year, rising 10% as of early September and reaching record highs despite economic headwinds. However, historical patterns indicate a tendency for the index to underperform during the month of September, with six of the last ten Septembers recording declines averaging 2%. Analysts have offered varying year-end forecasts, with the median target set at 6,500, suggesting minimal movement from current levels. This underscores the cautious outlook prevailing among investors, who are advised to brace for potential volatility and consider diversifying their portfolios ahead of the year’s final months [5].

Source: [1] MicroStrategy Denied S&P 500 Entry as Robinhood Takes the Spotlight (https://coinpedia.org/news/microstrategy-denied-sp-500-entry-as-robinhood-takes-the-spotlight/) [2] Robinhood Set to Join S&P 500 as Bitcoin Giant Strategy Misses Out (https://finance.yahoo.com/news/robinhood-set-join-p-500-212855353.html) [3] Robinhood Set to Join S&P 500 as Bitcoin Giant Strategy Misses Out (https://decrypt.co/338344/robinhood-set-to-join-sp-500-as-bitcoin-giant-strategy-misses-out) [4] The S&P 500 Is Roaring by Record Highs. History Says ... (https://www.nasdaq.com/articles/sp-500-roaring-record-highs-history-says-stock-market-will-do-next) [5] SPX: S&P 500 Index - Stock Price, Quote and News (https://www.cnbc.com/quotes/.SPX)