The months of waiting are over and SpaceX will begin trading on Nasdaq today after investors pumped $75 billion into the largest initial public offering in history. What happens next could have repercussions on financial markets, including cryptocurrencies.
One theory circulating is that the recent outflows of more than $5 billion from bitcoin The ETFs, which dragged the price of the largest cryptocurrency below $60,000, were driven in part by investors withdrawing funds to participate in the IPO. If so, some of that capital could return to cryptocurrencies in the coming days, boosting valuations.
The IPO goes both ways. On the one hand, a successful debut indicates broad market confidence, potentially attracting fresh capital and maintaining the risk-on sentiment that tends to drive Bitcoin and the broader crypto market along with stocks.
On the other hand, there is a note of caution. Pseudonymous analyst Doctor Profit, who correctly called the bitcoin sell-off since October, argues that record IPOs are often a hallmark of over-optimism and market tops rather than new beginnings.
