The upcoming initial public offering (IPO) of SpaceX, valued at $75 billion, is set to make history as one of the largest stock-market debuts, potentially affecting the crypto market. With OpenAI and Anthropic also planning to go public, the combined capital raise of over $240 billion could exceed the total venture-backed US IPOs since 2000. This massive capital pull may lead to a reduction in liquidity, impacting bitcoin and other cryptocurrencies.
As these companies prepare to enter the public market, crypto investors are watching closely, aware that the rotation of capital could trigger a downturn in the crypto market. The historical parallel with Coinbase's IPO in 2021, which marked the peak of the last bitcoin cycle, serves as a cautionary tale. With SpaceX holding a significant amount of bitcoin and the IPO's retail allocation potentially diverting funds from crypto, the market is bracing for a possible impact on crypto flows.
The coming weeks will be crucial in determining whether crypto can decouple from broader risk-on flows and hold its ground amidst the impending IPOs.