The months of waiting are over, and SpaceX is set to begin trading on the Nasdaq today after investors poured $75 billion into the largest IPO in history. What happens next could spill over into financial markets, including crypto.
One theory is that the recent exodus of more than $5 billion from Bitcoin ETFs, which dragged the price of the largest cryptocurrency below $60,000, were driven in part by investors pulling funds to participate in IPOs. If so, some of that capital could find its way back into crypto in the coming days, boosting prices.
The IPO cuts both ways. On the one hand, a blockbuster debut signals broad market confidence, potentially generating fresh capital and sustaining the risk-on mood that tends to lift bitcoin and equities, as well as the broader crypto market.
On the other hand, there is a note of caution. Pseudonymous analyst Dr. Profit, who has been correcting bitcoin’s selloff since October, argues that record IPOs are often driven by over-optimism and market topping rather than new beginnings.