The months of waiting are over, and SpaceX is set to begin trading on the Nasdaq today after investors pumped in $75 billion in the largest IPO in history. What happens next could send waves into financial markets, including crypto.
One theory floating around is that over $5 billion has been withdrawn from Bitcoin recently The ETF, which dragged the price of the largest cryptocurrency below $60,000, was partly driven by investors pulling funds to participate in IPOs. If so, some of that capital could flow back into crypto in the coming days, leading to an increase in valuations.
The IPO cuts both ways. On the one hand, a blockbuster debut signals broad market confidence, potentially attracting new capital and maintaining the risk-on mood that lifts Bitcoin and equities as well as the broader crypto market.
On the other hand, there is a note of caution. Pseudonymous analyst Dr. Profit, who has correctly called the Bitcoin selloff since October, argues that record IPOs are often the hallmark of excess optimism and market tops rather than new beginnings.