Bitcoin BTC$91,302.38 and most other digital assets headed lower in U.S. trading on Wednesday, extending overnight losses. At press time, bitcoin was down 3% over the past 24 hours at $91,100.

The CoinDesk 20 Index, which tracks the top 20 crypto assets, is trading nearly 4% lower over the same period, led by XRP, which is down over 8%. Ether ETH$3,162.52 is down 3.6%, showing no boost from Wall Street giant Morgan Stanley's move to offer a spot ETH ETF.

The crypto selloff comes as the Nasdaq heads higher by 0.5%, but precious metals pull back from recent large gains, with gold down 1% and silver off 5%.

Digital asset treasury (DAT) stocks are also not receiving a significant boost from Tuesday evening's announcement from MSCI that it will not exclude Strategy (MSTR) from its indexes for now. While Strategy is an outperformer with a 1% gain, most of the rest of the sector is lower, with Bitmine Immersion (BMNR) down 6%, Sharplink Gaming (SBET) off 2% and XXI (XXI) lower by 5%.

On the weekly timeframe, the ratio of MSTR to the iShares Bitcoin Trust (IBIT) has bounced off the 3-level for a second consecutive week and is currently trading around 3.11. In March 2024, the ratio held 3 as support before rallying to a peak of 9.5 in November 2024, coinciding with MSTR reaching its all-time high. Bulls will be watching closely to see whether the 3-level continues to act as support.