A historic stock market debut is imminent, with SpaceX's $75 billion IPO expected in June, which could impact crypto markets that share the same liquidity pool. SpaceX filed a confidential S-1 with the SEC, aiming for a $1.75 trillion valuation. If successful, it will be the largest stock market debut in history, surpassing Saudi Aramco's $29 billion record in 2019. Other notable IPOs, including OpenAI and Anthropic, are also on the horizon, with combined fundraising targets exceeding $240 billion.
This massive capital pull could lead to a bearish equities market and affect crypto prices. According to Alex Good, founder of Post Fiat, the IPOs could trigger a rotation out of equities and into new listings, potentially compressing liquidity in other assets, including crypto.
Bitcoin and other major cryptocurrencies have traded in tandem with tech and AI equities, and the upcoming IPOs may disrupt this correlation. The historical parallel with Coinbase's IPO in 2021, which marked the peak of the last bitcoin cycle, is a point of concern. The 30% retail allocation in SpaceX's IPO, roughly $22 billion, may also divert funds away from crypto. Additionally, SpaceX's disclosed bitcoin holdings of 8,285 BTC, worth around $600 million, make its IPO the first public-market debut of a company with a significant bitcoin position.
The impact of the SpaceX IPO on crypto markets will be closely watched, particularly during the roadshow window in May and June.