Key Takeaways
- Grant Cardone and Bitcoin advocates are urging a boycott of JPMorgan after the bank warned of major outflows from Strategy if removed from MSCI indices.
- JPMorgan faces criticism for its financial ties to Epstein and alleged shorting of MSTR, increasing scrutiny from the crypto community.
Prominent real estate investor Grant Cardone has joined crypto community members calling for a boycott of JPMorgan after the banking giant warned that Strategy could face up to $2.8 billion in outflows if it is removed from MSCI indices.
If additional index providers follow MSCI’s lead, total withdrawals could reach $8.8 billion, JPMorgan analysts said in a note this week.
In the wake of JPMorgan’s estimates, Strategy stock (MSTR) fell below $200 on Wednesday, according to Yahoo Finance data.
Shares continued to slide through the end of the week, hitting this year’s low of around $170 at Friday’s market close.
The stock had previously peaked at above $450 in mid-July. Year-to-date, MSTR, once outperforming much of the S&P 500, has now logged a 41% decline, and over the past year, it has fallen roughly 57%.
Bitcoin supporters and crypto community members argue that JPMorgan launched a deliberate, premeditated attack on MSTR shareholders.
The accusations come from figures such as Cardone, Max Keiser, an early and outspoken Bitcoin proponent who serves as a senior advisor to President Nayib Bukele, and pro-XRP lawyer John Deaton.
There are also claims circulating in the market that JPMorgan is shorting MSTR.
Critics have highlighted JPMorgan’s alleged ties to Jeffrey Epstein. The bank has faced Congressional scrutiny and subpoenas regarding its oversight of Epstein’s accounts and financial activities.
Are GameStop vibes returning?
As the backlash intensifies, some in the crypto community have warned that their frustration with JPMorgan could grow into a GameStop-style response.
Deaton stated that if retail traders believe that the bank is betting against MSTR, they may rally around the stock as they did with GME and attempt to drive its price higher.
Source: https://cryptobriefing.com/jpmorgan-boycott-msci-warning/
