A historic stock market debut is approaching, with SpaceX's $75 billion initial public offering (IPO) expected in June, which may divert investor interest and impact the crypto market. SpaceX filed a confidential S-1 with the SEC, aiming for a $1.75 trillion valuation. This listing, along with OpenAI's and Anthropic's upcoming IPOs, could pull in over $240 billion, exceeding the total of all venture-backed US IPOs since 2000.
The massive capital influx may lead to a bearish equities market and affect crypto, as it shares the same liquidity pool as tech and AI equities. Bitcoin and other major cryptocurrencies have shown a tightening correlation with the Nasdaq and S&P 500, suggesting that speculative capital leaving equities for IPO allocations could impact crypto prices.
The historical parallel with Coinbase's 2021 IPO, which marked the peak of the last bitcoin cycle, raises concerns that institutional milestones may signal market tops rather than starting lines. SpaceX's 30% retail allocation and its material bitcoin position could also influence crypto flows.
The upcoming roadshow window in May and June will be a testable signal for whether crypto can hold up against the IPO's impact.