- Crypto expert reveals 7 real reasons behind the October 10 crypto crash.
- These reasons result in more long-term bullish expectations for BTC.
- However, most analysts grow more bearish for the short term.
As the price of Bitcoin (BTC), the pioneer crypto asset, continues to fall to lower targets, the crypto community grows more bearish, leading analysts scrambling to find any bullish or bearish indicators that could provide any guidance to surviving these volatile changes. The sudden bearish wave came with the October 10 crash and one crypto expert reveals 7 real reasons behind the October 10 crypto crash.
Crypto Expert Reveals 7 Real Reasons Behind the October 10 Crypto Crash
One Analyst takes a closer look at the events that caused the $20 billion crypto market crash on October 10, 2025. This day marked the greatest single-day liquidation in crypto history, when nearly all long and leverage trades got wiped out in a matter of hours, leaving the crypto market in a state of total market reset. Now, analysts believe that event to have pushed the crypto market into a bearish phase.
As we can see from the post above, this reputed crypto page goes on to highlight 7 factors that he believes to be the main reasons behind the crypto market crash and $20 billion liquidation event that took place on October 10, 2025. The post says that these reasons point to something much bigger than the market anticipated and begins by asking the question, “Why did the market collapse so violently on October 10 when there was no macro event, no ETF news, no exchange failure, and nothing?”
The post says that the missing piece comes in knowing that the MSCI quietly dropped a major update on October 10 on the same evening the crash began, when the MSCI released a consultation note that almost nobody in crypto paid attention to. To highlight, the MSCI said they are reviewing how to classify companies whose main business involves accumulating Bitcoin or digital assets.
Greater Opportunities Ahead?
The key proposal stated that if digital assets = 50% or more of a company’s total assets, and the company’s operating activity resembles a digital asset treasury, then that company can be excluded from MSCI global indexes. This directly puts several Bitcoin-heavy companies at risk, especially MicroStrategy. So, why does this matter? If MSCI excludes these companies, index funds are forced to sell funds tracking MSCI indices must remove these stocks. They do not get to choose.
This is literal forced institutional selling, and MicroStrategy becomes a primary target. So, if MSTR is labeled fund-like, MSCI-indexed funds could be forced to reduce or exit positions, and if MSTR falls, so does BTC. But how does this connect to the October 10 crash? Fear caused by the moves above led to the crash.
Michael Saylor responded publicly, right when MSCI fears started dominating headlines, Saylor dropped a detailed clarification saying MicroStrategy is not a fund, not a trust, not a holding company. It is a publicly traded operating company with a $500 million software business and a Bitcoin-based treasury strategy.
The post concludes to say that fear may have caused BTC to fall, but the long-term narrative remains the same: Saylor remains on track, institutions continue to adopt BTC, leading to ETF flows eventually stabilising. All this will lead to liquidity cycles returning and greater opportunities to arise.
