A historic stock market debut is imminent, with SpaceX's initial public offering expected to take place in June, drawing interest from the same liquidity pool as crypto. The company has filed a confidential S-1 with the SEC, aiming to raise $75 billion at a valuation of $1.75 trillion. If successful, this would be the largest stock market debut in history, surpassing Saudi Aramco's $29 billion record in 2019. SpaceX is not alone, as OpenAI and Anthropic are also planning to go public, with the three companies potentially raising over $240 billion from June to the end of the year.
This massive capital pull could have a significant impact on the crypto market, which shares the same liquidity pool as tech and AI equities. As a result, crypto prices may be affected as investors allocate their funds to these high-profile IPOs. The historical parallel with Coinbase's IPO in 2021, which marked the peak of the last bitcoin cycle, is a point of concern. The lesson learned from that experience is that institutional milestones often mark the top of a cycle rather than the beginning.
With SpaceX's IPO on the horizon, it remains to be seen whether crypto will hold up or begin to decline as allocators free up room for the subscription.