The months of waiting are over, and SpaceX is set to begin trading on the 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 doing the rounds is that recent outflows of over $5 billion from bitcoin ETFs, which pulled the price of the largest cryptocurrency below $60,000, were driven in part by investors withdrawing funds to participate in the IPO. If so, some of this capital could find its way back into crypto in the coming days, giving a boost to valuations.
The IPO cuts both ways. On the one hand, a blockbuster debut signals broad market confidence that potentially draws fresh capital and sustains the risk-on sentiment that tends to lift bitcoin and the broader crypto market along with stocks.
On the other hand, there is a caution. Pseudonymous analyst Doctor Profit, who correctly called bitcoin’s selloff since October, argues that record IPOs are often a sign of excessive optimism and market tops rather than new beginnings.
