SpaceX IPO Could Suck $75B From Crypto's Rocket Fuel ⛽

Elon Musk's SpaceX is preparing a public offering that analysts say could pull capital away from digital assets at a sensitive moment for the market. The rocket and satellite company is projected to be valued at $1.75 trillion, with the deal expected to raise $75 billion, making it the largest IPO on record. SpaceX has reportedly reserved 30% of the offering for retail investors, a portion worth roughly $22.5 billion, which market participants described as unusual for a deal of this size. "Crypto is a funding currency for a lot of this," said Spencer Hallarn, global head of over-the-counter trading at GSR. "We've got to find $75 billion for this IPO, and it's got to come from somewhere," he added.

The IPO is drawing attention from investors who typically allocate capital to cryptocurrencies and other digital assets, according to analysts. With a $1.75 trillion valuation, SpaceX would rank among the most valuable private companies in history, and a significant share of the proceeds is expected to flow toward the artificial intelligence sector, where Musk has expanded his business interests. The deal's scale has prompted market participants to monitor potential spillover effects on crypto liquidity, particularly in $BTC, which was recently trading near $61,800, more than 50% below its all-time high. Bitcoin also recorded its largest weekly decline since late 2022, adding to concerns about the broader risk environment.

Selling pressure on $BTC has been compounded by outflows from crypto exchange-traded funds and by continued sales from Strategy, the business intelligence firm formerly known as MicroStrategy, which has historically been one of the largest corporate holders of the asset. ETF flows have turned negative in recent weeks, reflecting reduced institutional appetite as macro conditions tighten and the prospect of a record-sized equity offering absorbs available capital. The combination of large-scale equity issuance, ETF outflows, and corporate sales has created what analysts described as a "perfect storm" scenario for digital assets, with traders watching key technical levels for signs of further downside.