Did Morgan Stanley Orchestrate Bitcoin October Crash? Analysts Draw Correlations

Morgan Stanley’s filing for a Bitcoin and Solana ETF, immediately followed by MSCI retaining digital asset companies in its index, has triggered analyst speculation about large-scale market manipulation. Analysts from Bull Theory allege that the events surrounding Bitcoin’s trajectory from its October crash to its January recovery resemble an orchestrated setup. The initial trigger occurred on October 10 when MSCI, previously a division of Morgan Stanley, proposed removing Digital Asset Treasury Companies (DATCOs) from its global indexes. This potential removal would have compelled institutional investors to divest from firms like Strategy and Metaplanet, leading to a substantial contraction of institutional Bitcoin exposure. Following this announcement, Bitcoin’s price plummeted by nearly $18,000, wiping out significant market capitalization. The subsequent three-month consultation period, which closed on December 31, created prolonged market anxiety and suppressed prices, resulting in the worst crypto quarter since 2018. However, on January 1, 2026, Bitcoin suddenly surged by 8% in five days, suggesting to analysts that some insiders might have known about impending positive developments. The narrative shifted dramatically on January 5 and 6 when Morgan Stanley unveiled plans for spot crypto ETFs. Simultaneously, MSCI announced it would not proceed with the proposed exclusion of crypto-heavy companies from its indexes. Bull Theory analysts argue that MSCI created pressure by threatening index removal to suppress prices, allowing institutions to accumulate at lower valuations. Once accumulation was complete, Morgan Stanley introduced the ETF and MSCI removed the threat, raising concerns about potential coordinated manipulation to profit from the subsequent rebound.