According to @BullTheoryio, MSCI confirmed it will keep Bitcoin treasury companies such as MicroStrategy (MSTR) in its indexes, removing forced-selling risk that fueled prior FUD and easing fears linked to the October 10 drawdown narrative (source: @BullTheoryio on X, Jan 7, 2026). According to @BullTheoryio, MSCI also changed its index methodology so that when these companies issue new shares, the index will not increase share count, eliminating the automatic passive purchases that index trackers previously had to make on new issuance (source: @BullTheoryio on X, Jan 7, 2026). According to @BullTheoryio, the author’s example shows that a 20M-share issuance at $300 once implied about $600M of forced index-tracker demand, but now it implies zero incremental passive buying, which reduces capital-raising capacity for additional BTC purchases and explains why BTC and MSTR did not spike on the headline (source: @BullTheoryio on X, Jan 7, 2026).

According to @StockMarketNerd, Carvana CVNA delivered a more than 30x advance, then a 98% drawdown, and nearly a 100x rebound coinciding with its addition to the S&P 500 (source: @StockMarketNerd). For traders, index inclusion can trigger mechanical buy flows from passive funds that track the S&P 500, which can amplify short-term liquidity and volatility around rebalance dates (source: S&P Dow Jones Indices methodology). This extreme swing profile underscores the need for tight position sizing and stop discipline during index-adjustment windows, using the performance history cited by @StockMarketNerd for context and the rebalance mechanics from S&P Dow Jones Indices for execution timing (sources: @StockMarketNerd; S&P Dow Jones Indices methodology). Crypto angle: risk-on bursts in high-beta US equities have shown positive short-term correlation with BTC and ETH during 2023, so traders can monitor for momentum spillover if equity risk appetite broadens (source: Kaiko research, 2023).