# The Institutional Shakeout Cycle

Watch how the game plays out, cycle after cycle:

**Phase 1: The Index Threat** — When major indices like MSCI signal potential delisting or exclusion, panic floods the market. Crypto prices crater hard, and the buying pressure vanishes for months. Liquidity dries up, and retail investors get caught holding bags while institutions play their next move.

**Phase 2: The Narrative Reset** — Traditional finance players dust off old talking points about controversial figures and megacap crypto holdings. Margin requirements suddenly spike to 95%, squeezing overleveraged positions. Whispers about exchange policy shifts ripple through trading channels, nobody knows what's real anymore.

The cycle repeats because the mechanics stay the same: uncertainty → liquidations → accumulation. Institutions know this dance well. Understanding these patterns helps you anticipate where the real pressure points are, rather than getting swept up in the noise.