Bitcoin News Update: Institutional Ban Proposal Triggers Crypto Community Outrage: JPMorgan Faces Scrutiny

Bitcoin Community Calls for

Boycott After Considers Dropping MicroStrategy From Indexes

The

community, along with MicroStrategy (MSTR) supporters, have organized a widespread boycott of & Co., intensifying the conflict after the bank reported that MSCI might remove crypto-centric firms from its global indexes. such as real estate mogul Grant Cardone and Bitcoin enthusiast Max Keiser, reflects mounting discontent over what many see as threats to the financial health of the crypto industry.

The potential removal has triggered swift opposition. Cardone, a well-known Bitcoin supporter,

from JPMorgan Chase and plans to take legal action against the bank over unrelated credit card issues, . Keiser echoed the sentiment, , further fueling online activism. At the same time, MicroStrategy founder Michael Saylor has stood by the company’s approach, rather than simply holding assets.

JPMorgan’s involvement in spreading the MSCI update has provoked strong criticism.

being dropped from major indexes could undermine MicroStrategy’s reputation, restrict its ability to raise funds, and worsen its liquidity problems. This comes as the company’s debt-heavy finances face increasing strain: , and yields on its 10.5% notes have climbed to 11.5% as demand falls.

, is considering a rule change that would bar companies with at least half their assets in digital currencies from its benchmarks, including the MSCI World and MSCI USA indexes. in a recent report that this could result in as much as $8.8 billion in passive outflows for MicroStrategy, whose $59 billion market cap is closely linked to its presence in major indexes. since their high in November 2024, paralleling Bitcoin’s 30% slide and erasing the premium the stock once held.

The consequences could reach beyond MicroStrategy.

that index funds forced to sell shares could push Bitcoin prices lower, potentially triggering a negative cycle for crypto treasury firms. , has also reignited discussions about index eligibility, with markets like Indonesia already updating float requirements to match global practices.

Since joining the Nasdaq 100 in December 2024, MicroStrategy has benefited significantly,

that now faces uncertainty. , active investors may also exit, speeding up a transition toward more traditional assets. The company’s CFO has pointed to "multiple levers" for managing liquidity, such as at-the-market equity offerings, but can survive if Bitcoin remains below $70,000 for an extended period.

This dispute highlights the ongoing friction between innovation and established norms in the crypto world. As the January 15 deadline nears,

that could test the industry’s resilience and reshape how digital assets are evaluated in mainstream finance.