The months of waiting have ended, and SpaceX is set to begin trading on Nasdaq today after investors pumped $75 billion into the largest IPO in history. What happens next could ripple across financial markets, including crypto.
One theory making the rounds is that recent outflows of over $5 billion from bitcoin ETFs, which dragged the price of the largest cryptocurrency below $60,000, were partly driven by investors pulling funds to participate in the IPO. If so, some of that capital could find its way back into crypto in the coming days, providing a lift to valuations.
The IPO cuts both ways. On one hand, a blockbuster debut signals broad market confidence, potentially drawing fresh capital and sustaining the risk-on mood that tends to lift bitcoin and the wider crypto market alongside equities.
On the other hand, there’s a note of caution. Pseudonymous analyst Doctor Profit, who correctly called bitcoin’s selloff since October, argues that record IPOs are often a hallmark of excess optimism and market tops rather than new beginnings.