Investors preparing for one of the largest initial public offerings (IPO) in history could redirect funds away from Bitcoin and other cryptocurrencies. SpaceX’s upcoming listing, valued at approximately $1.75 trillion, is expected to attract substantial investment interest, particularly from those who have previously engaged in crypto markets. This shift could intensify downward pressure on Bitcoin, which is already struggling near critical support levels.
SpaceX has designated around 30% of its IPO shares—equivalent to $22.5 billion—for retail investors, an unusually large allocation for a blockbuster offering. Market analysts note that the pool of money chasing this IPO overlaps significantly with capital traditionally invested in digital assets. According to the global head of over-the-counter trading at GSR, raising the substantial funds required for SpaceX’s IPO likely means reallocation from crypto markets, which serve as a key source of investment capital.
Bitcoin's price recently tested lows near $61,800, marking a drop exceeding 50% from its all-time high last year and recording its steepest weekly decline since late 2022. This comes amid broader market signals that liquid capital is rotating out of cryptocurrencies and into sectors viewed as more promising, such as artificial intelligence. Crypto firm CEO Thomas Puech emphasized that both crypto and SpaceX compete for the same investor funds, with AI currently favored as a more attractive investment.
Adding to crypto market pressures is the activity of Strategy, the largest corporate Bitcoin holder, which disclosed selling Bitcoin for the first time since 2022, triggering negative sentiment. Concurrently, crypto exchange-traded funds (ETFs) saw over $2 billion in outflows during May, indicating significant capital movement away from digital assets. Attempts by Strategy to purchase Bitcoin again recently did little to ease the bearish mood. Experts also observe that some capital exiting the crypto space is flowing into equities, though it is unclear if this is directly into the SpaceX IPO.