A historic stock market debut is imminent, with SpaceX's initial public offering expected to take place in June, potentially diverting interest and liquidity from the crypto market. The company has filed a confidential S-1 with the SEC, aiming to raise $75 billion at a valuation of $1.75 trillion. This would surpass Saudi Aramco's $29 billion record in 2019, making it the largest stock market debut in history.
Meanwhile, OpenAI and Anthropic are also planning to go public, with valuations nearing $1 trillion and $60 billion, respectively. The combined capital raised from these IPOs could exceed $240 billion, a figure that surpasses the total venture-backed US IPOs since 2000. This massive influx of capital may lead to a rotation out of equities and a compression of liquidity in other markets, including crypto. As a result, bitcoin and other cryptocurrencies may experience a decline in value as investors allocate their funds to these high-profile IPOs.
The historical precedent of Coinbase's IPO in 2021, which marked the peak of the last bitcoin cycle, serves as a cautionary tale. With SpaceX's IPO on the horizon, crypto investors will be closely watching to see if the market can withstand the potential liquidity drain.