SpaceX’s massive $75 billion IPO could siphon liquidity from the crypto market and put fresh selling pressure on Bitcoin, analysts warn.
According to Reuters, the rocket maker has earmarked up to 30% of the offering — roughly $22.5 billion in shares — for retail investors. That allocation, market participants say, could prompt some investors to rotate cash out of higher-risk assets like Bitcoin and into the IPO or other equity trades.
“Crypto is a funding currency for a lot of this,” said Spencer Hallarn, global head of over-the-counter trading at GSR, noting the IPO’s funds “have got to come from somewhere.” Hallarn argued that a blockbuster tech debut tied to a household name is likely to pull capital out of crypto at least initially, because both markets compete for similar speculative dollars.
Others echo that view. Thomas Puech, CEO of crypto trading firm INDIGO, said investor appetite has shifted toward AI-related plays, which he called the “sexier” trade compared with crypto right now. Market analyst David Morrison of Trade Nation added that “Bitcoin has lost its luster and novelty for many investors,” a trend the SpaceX story could accelerate.
Flows data also indicate the pressure is already under way. Sui Chung, CEO of CF Benchmarks — which provides indexes for several crypto ETFs — said outflows from those funds surged to more than $2 billion in May. BTC is trading around $62,136, roughly 50% below its all-time high of $126,000 quoted in the report, according to CoinGecko.
Chung suggested much of the money leaving crypto is moving into equities, though he warned it’s not guaranteed to land directly in SpaceX. With more high-profile IPOs expected and renewed caution around interest rates, analysts say the near-term backdrop for crypto looks challenging.
“We don’t see meaningful tailwinds soon,” Hallarn said, adding that the current environment “does not look particularly supportive.” For traders and investors, the SpaceX IPO could be another catalyst that nudges capital away from crypto and into traditional markets in the short term.
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