Part 10/13:
Sentiment and Narrative Effects: Headlines implying Strategy’s ousting from major benchmarks could foster negative sentiment, creating a feedback loop where declining stock prices further impact BTC holdings and broader crypto market stability.
Impact on BTC and Crypto Ecosystem: As Strategy’s business model is closely tied to Bitcoin’s corporate treasury practices, an index exclusion could influence the perception of BTC's legitimacy, potentially affecting liquidity and institutional participation. The risk extends beyond Strategy itself to other digital asset companies and crypto mining firms that may face regulatory or classification challenges.