“Crypto is crashing like crazy,” and conspiracy theories are flying everywhere: the US government is “grabbing money,” Wall Street is “shorting,” and even “JPMorgan vs. Trump.”

“Crypto is crashing like crazy,” and conspiracy theories are flying everywhere: the US government is “grabbing money,” Wall Street is “shorting,” and even “JPMorgan vs. Trump.”

``` A research report from JPMorgan has ignited anger in the cryptocurrency community, completely setting off an already anxious crypto crowd amid Bitcoin’s plunge. The report, like a bomb dropped into deep waters, rapidly triggered a wave of conspiracy theories throughout the crypto space—accusations ranging from Wall Street maliciously shorting, to the U.S. government "engineering a crash", escalating even into a power struggle over the future of money. This Wall Street giant—JPMorgan’s warning about the risk of MicroStrategy being removed from indices—unexpectedly became the fuse for various conspiracy theories. According to a WallStreetCN article, JPMorgan pointed out in its report that MSCI is considering removing companies with large Bitcoin holdings from its indexes, which could result in up to $8.8 billion of passive outflows for MicroStrategy. Amid Bitcoin falling below its estimated $94,000 “production cost” (as calculated by JPMorgan) and spreading market panic, the crypto community interpreted this Wall Street investment bank's risk warning as a "deliberate attack.” Angry investors quickly targeted JPMorgan, the publisher of the report. Bitcoin’s strongest advocates launched a "boycott JPMorgan" campaign on social media, accusing the bank of shorting MicroStrategy and calling on investors to fight back against this Wall Street behemoth with a GameStop-style short squeeze by buying Bitcoin and MicroStrategy stock. (Bitcoin’s price fell below JPMorgan’s estimated production cost of $94,000, the first time since July 2020) As market sentiment brewed, all kinds of narratives became increasingly grand and complex. There were even rumors that the U.S. government orchestrated the recent market crash to buy up Bitcoin and MicroStrategy at low prices. The most imaginative version painted this as an ultimate showdown: JPMorgan and the Federal Reserve representing the "old monetary order" versus Trump’s government, the U.S. Treasury, and Bitcoin as the "new digital architecture", with MicroStrategy as the key “bridge” in this centennial battle. Trigger: JPMorgan’s Report Stirred the Hornet’s Nest The cause seems simple: JPMorgan’s analyst team shared MSCI’s proposed policy to remove "digital asset treasury companies" from its indices. Under this proposal, any company with 50% or more of its assets in cryptocurrency would lose index eligibility. The new policy is expected to take effect in January 2026. As a large Bitcoin holder, MicroStrategy would be the first to bear the brunt. JPMorgan estimates that of MicroStrategy's approximately $59 billion market cap, about $9 billion comes from investment instruments tracking various indices. If only removed from MSCI’s index, it could spark $2.8 billion of passive selling; if other index providers follow suit, the total outflows could reach $8.8 billion. This warning isn't baseless. Data shows MicroStrategy’s recent stock performance has been even worse than Bitcoin itself, with its premium relative to the Bitcoin it holds narrowing significantly. JPMorgan believes the price decline has already largely reflected market concerns about index removal risks. After this warning, MicroStrategy’s stock responded by dropping more than 3% last Friday, closing at $170, after peaking at $450 in mid-July, bringing its year-to-date decline to 41%. Confronted with questions, MicroStrategy founder Michael Saylor responded that the company is not a passive fund or trust, but a "structure-driven financial company supported by Bitcoin that creates, builds, issues, and operates." Crypto Community Strikes Back: From “Boycott JPMorgan” to “Short Squeeze on Wall Street” However, simply relaying this information made JPMorgan the unexpected focus of crypto community rage. According to WallStreetCN, real estate investor and Bitcoin advocate Grant Cardone stated on social media: "I just withdrew $20 million from Chase and sued them over credit card misconduct." Bitcoin advocate Max Keiser called out: "Crush JPMorgan, buy MicroStrategy and Bitcoin." This online boycott movement quickly spread. Reports indicate that a large number of users are rushing to JPMorgan to close their accounts. Furthermore, there are even rumors circulating in the crypto community that JPMorgan has "threateningly large short positions against MSTR," and that if MSTR’s stock price were to rise 50% over last Friday's close, it could bankrupt JPMorgan. More radical voices called for a repeat of the 2021 "GameStop" incident. XRP-supporting lawyer John Deaton stated that if retail investors believe JPMorgan is shorting MicroStrategy, they might band together as they did against shorting institutions previously, and push up the stock’s price. Additionally, critics dug up JPMorgan’s historical ties to Jeffrey Epstein, accusing the bank of facing congressional scrutiny and subpoenas over its handling of Epstein’s accounts and financial activities. Bitcoin advocates tried connecting these historical issues to the current market moves, creating a narrative of JPMorgan orchestrating a "deliberate attack". Conspiracy Theory Escalates: Did the U.S. Government “Engineer the Crash” to Buy at the Bottom? While JPMorgan became public enemy number one, even grander conspiracy theories began spreading across the crypto community. Bitcoin advocates like Max Keiser claimed that the U.S. government may be planning to acquire MicroStrategy and Coinbase, and that the recent Bitcoin selloff was part of this plan. According to this theory, U.S. officials want MicroStrategy’s price-to-book ratio to approach 1.0, so they “engineered” Bitcoin’s collapse to squeeze the premium. Supporters claim: "The U.S. is considering investing billions in MSTR—they need its P/B ratio to hit 1 for the investment to make sense, so they engineered Bitcoin’s crash." Some analyses pointed out that Bitcoin’s price movements show distinct geographic differences: the U.S. trading session drives prices down, while Asian markets keep buying. This difference is interpreted as "evidence" that the U.S. government is conducting an organized selloff. Blockchain data shows that the U.S. government holds over 326,000 bitcoins from previous asset seizures, giving even more room for the "government accumulation theory." Supporters claim the government is suppressing the price to achieve a "1 million BTC reserve target." The Grand Narrative of "JPMorgan vs. Trump and the Treasury" Of all the conspiracy theories, none is more complex or dramatic than interpreting the market's turmoil as a showdown between the "old financial order" and "new political forces": JPMorgan, Wall Street, and the Fed form the core of the "old order" vying against the "new order" based on the U.S. Treasury, stablecoins, and Bitcoin—supposedly representing the Trump administration's strategic direction. Allegedly, Trump and the U.S. Treasury’s plan is to support Bitcoin, MicroStrategy, and stablecoins, while weakening JPMorgan, the Fed, and the traditional banking system. Although none of these claims have been confirmed in official statements or regulatory documents, the speculation is spreading widely on social media, giving the market’s volatility a more dramatic twist. This narrative holds that JPMorgan, as defender of the dollar’s traditional settlement system, sees Bitcoin—and the plan to include it in the national reserve system—as a threat. Thus, JPMorgan, by shorting MicroStrategy, the “bridge” between traditional capital and Bitcoin, seeks to preserve the Fed’s monopoly by squeezing liquidity and suppressing the narrative before the Trump government takes control and establishes the new monetary framework. In this version, Bitcoin becomes both the victim in the scramble for monetary dominance and also the foundation for the new system. Some even speculate that the U.S. government may eventually make a strategic investment in MSTR, injecting U.S. Treasury bonds in exchange for ownership. Supporters claim Trump needs to gain actual control of the Fed before Chairman Powell's term ends, and that today’s monetary power struggle is part of a larger strategy. Risk Warning and Disclaimer The market involves risk, and investments must be made cautiously. This article does not constitute personal investment advice, nor does it take into account unique investment objectives, financial situations, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article fit their specific situations. Investment decisions made accordingly are the responsibility of the user. ```