JP Morgan faces explosive allegations that it strategically republished outdated information about MicroStrategy's potential index delisting just moments before a major tariff announcement, creating a perfect storm that wiped billions from the crypto market on October 10. Market analysts are calling it market manipulation disguised as routine analysis, raising serious questions about institutional practices during volatile trading periods.
The cryptocurrency community is reeling from allegations that JP Morgan, America's largest bank, may have deliberately orchestrated the October 10 market crash through carefully timed release of stale information.
According to market analysts, JP Morgan circulated a six-week-old MSCI investor note regarding MicroStrategy's potential delisting risks just minutes before President Trump's tariff announcement. The timing has raised eyebrows across the industry, with critics suggesting the bank exploited macro-economic uncertainty to amplify panic selling.
The document in question, originally published 42 days prior, warned about MicroStrategy's concentration risk within major indices due to its substantial Bitcoin holdings. While the information wasn't new, its resurfacing at a critical moment—when markets were already bracing for tariff news—allegedly created a cascading effect of liquidations.
"This appears to be a textbook case of using legitimate information at a strategically opportune moment to move markets," said one crypto market analyst who requested anonymity. "The note was old news, but introducing it during heightened volatility turned it into a catalyst."
MicroStrategy, led by Bitcoin advocate Michael Saylor, has become increasingly intertwined with crypto market performance due to its aggressive Bitcoin acquisition strategy. The company holds over $30 billion in Bitcoin on its balance sheet, making any concerns about its index status particularly sensitive for institutional investors.
The October 10 crash saw Bitcoin plummet by double-digit percentages within hours, wiping out hundreds of billions in market capitalization across the cryptocurrency sector. While multiple factors contributed to the sell-off, the timing of JP Morgan's document circulation has become a focal point for those alleging manipulation.
JP Morgan has not yet publicly responded to these accusations. The bank has historically maintained a complex relationship with cryptocurrency, with CEO Jamie Dimon expressing skepticism about Bitcoin while simultaneously expanding the bank's blockchain services.
If these allegations gain traction, they could trigger regulatory scrutiny into how traditional financial institutions interact with crypto markets during periods of heightened volatility. The incident underscores the growing tension between established Wall Street players and the digital asset ecosystem they increasingly influence.