A historic stock market debut is nearing, with SpaceX's $75 billion IPO expected in June, which could divert interest away from crypto. SpaceX filed a confidential S-1 with the SEC, targeting a $1.75 trillion valuation, which would make it the largest stock market debut in history. The company is not alone, as OpenAI and Anthropic are also planning to go public, with combined funding exceeding $240 billion, a figure that surpasses all venture-backed US IPOs since 2000.
This massive capital pull could lead to a bearish equities market, affecting crypto as it shares the same liquidity pool as tech and AI equities. Bitcoin and other major cryptos have traded in correlation with the Nasdaq and S&P 500, and when speculative capital leaves equities for IPO allocations, it may also impact crypto prices.
The historical parallel with Coinbase's IPO in 2021, which marked the peak of the last bitcoin cycle, raises concerns that institutional milestones may signal tops rather than starting lines. SpaceX's IPO, with a 30% retail allocation and a material bitcoin position, will be a test for crypto, as it may divert attention and capital away from the crypto market.