Market Crash on October 10 Explained: Why Crypto Firms Faced Losses

The cryptocurrency market experienced a significant downturn on October 10, 2025, driven by concerns about index exclusions. MSCI’s consultation on crypto-focused firms raised doubts about their classification within global indices, leading to sharp sell-offs and impacting companies like MicroStrategy. The MSCI review proposed classifying firms with over 50% of assets in Bitcoin or similar digital assets as funds instead of core business assets, potentially leading to index exclusions and passive fund outflows. This sudden change impacted market prices, particularly for stocks tied to these digital asset-focused businesses.