In what could soon be recognized as the worst-performing week since November 2022, the market’s leading crypto, Bitcoin (BTC), experienced a significant downturn on Friday, plummeting to an eight-month low of $80,000.
Ran Neuner, the founder of Crypto Banter, believes he has uncovered the reasons behind the crash that commenced on October 10 and why the market has struggled to regain its footing since then.
Once included, passive index trackers are compelled to purchase large quantities of their stocks, thereby enabling these companies to grow even larger and secure placements in additional indices, thus perpetuating a self-reinforcing cycle.
This is crucial because funds follow a cyclical pattern: they acquire assets, grow larger, and become eligible for additional indices, further boosting their asset base. A ruling on this matter is anticipated on January 15, 2026.
This pivotal date now appears anything but coincidental; it marked a realization among informed market participants regarding significant risks to both cryptocurrencies and the existing market structure.
Conversely, if the ruling is positive, Neuner asserts that it could signal a renewed bull market for Bitcoin and the broader crypto market.
As of this writing, Bitcoin has slightly recovered to $84,880. However, the market’s leading cryptocurrency is trading 32% below its all-time high of $126,000, which was reached at the beginning of October—just four days before the major crash.
Featured image from DALL-E, chart from TradingView.com
