Did Morgan Stanley Orchestrate the Bitcoin October Crash? Analysts Draw Connections
Morgan Stanley’s inclusion of a Bitcoin (BTC) and Solana (SOL) exchange-traded fund (ETF), coupled with MSCI’s decision to keep digital asset companies on its list, has caused a wave of speculation among analysts. Notably, Bull Theory analysts suspect that these events may indicate massive market manipulation.
Bitcoin Market Revolution?
In a posted On social media platform X (formerly Twitter), Bull Theory analysts drew attention to the timeline of events involving Bitcoin, saying that the trajectory from its October crash to its subsequent recovery in January resembled a set-up backed by data.
An important start occurred on October 10, when MSCI – previously part of Morgan Stanley – proposed to remove Digital Treasury Companies (DATCOs) from its global indexes.
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This decision will affect firms like Strategy and Metaplanet, which holds large Bitcoin assets on its balance sheets. The implications were profound, given that the MSCI indexes direct billions of dollars in passive investments.
If these companies were to be removed, institutional investors, including pension funds and ETFs, would be forced to divest, leading to a significant reduction in institutional exposure to Bitcoin and an immediate financial tightening.
After that announcement, the price of Bitcoin dropped by almost 18,000 dollars, wiping more than 900 billion dollars from the total crypto market.
Morgan Stanley and MSCI Shift
Uncertainty continued with a consultation period that remained open until December 31. This three-month window of prolonged anxiety curbed investor demand for Bitcoin.
Unreasonable investors are wary, the funds linked to the index faced a forced sell-off, and as a result, the prices saw a big drop-with Bitcoin. to drop around 31% and altcoins suffered even more, marking the worst quarter for crypto markets since 2018.
However, the situation began to change on January 1, 2026, as Bitcoin experienced an unexpected surge, rising 8% in just five days. This increase of $ 7,300, from $ 87,500 to $ 94,800, has left many analysts confused, especially since the endless sales seem to have stopped suddenly.
Analysts noted that this sudden outbreak could mean that insiders may have foreknowledge of upcoming developments. Then, the narrative changed dramatically on January 5 and 6. Within 24 hours, Morgan Stanley revealed its plans for Bitcoin, Ethereum (ETH), and Solana ETFs.
This was followed by MSCI announcing its decision not to proceed with the proposed early exclusion of crypto-heavy companies from its indexes.
A Calculated Move?
The sequence of these events led analysts to present a narrative: MSCI started pressure by threatening to remove the index in October, leading to an extended period of uncertainty and depressed prices.
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When institutions rallied at low prices, Morgan Stanley launched its ETF, as well MSCI then removed the threat of a lockout, expressing serious concern about the possibility of coordinated efforts to manipulate market conditions.
Bull Theory analysts argue that as the market now returns to buying money, the same businesses that may have planned for the previous downturn may be strategically positioned to make a profit by re-lending.
At the time of writing, BTC is trading at $91,550, having pulled back 2% from the $95,000 2-month high reached earlier in the week.
Featured image from DALL-E, chart from TradingView.com
