In approximately six weeks, one of the largest initial public offerings in history is expected to take place, with SpaceX aiming to raise $75 billion at a valuation of $1.75 trillion. This listing, along with those of OpenAI and Anthropic, could collectively pull in over $240 billion by the end of the year, surpassing the combined total of every venture-backed US IPO since 2000. The sheer scale of this capital raise has the potential to drain liquidity from the market, including that which supports bitcoin and other cryptocurrencies. As these companies prepare to go public, the allocation of funds could lead to a rotation out of equities and into these new listings, potentially affecting the value of crypto assets.
Historical precedent, such as the Coinbase listing in 2021, suggests that such events can mark the beginning of a downturn in crypto prices. With SpaceX's significant retail allocation and its own holdings in bitcoin, the upcoming IPO will be a crucial test for the crypto market, particularly in how it responds to the changed liquidity landscape.