The months of waiting are over and SpaceX is set to begin trading on the Nasdaq today after investors pumped $75 billion into the largest IPO in history. What happens next could impact financial markets, including cryptocurrencies.
One theory floating around is that recent outflows of over $5 billion from Bitcoin The ETFs, which sent the price of the largest cryptocurrency below $60,000, were partly driven by investors withdrawing funds to participate in the IPO. If so, some of that capital could find its way back to crypto in the coming days, boosting valuations.
The IPO goes both ways. On the one hand, a successful debut signals broad market confidence, potentially attracting new capital and supporting the risk-on mood that tends to boost bitcoin and the broader crypto market alongside stocks.
On the other hand, there is a caveat. Pseudonymous analyst Doctor Profit, who has rightly called Bitcoin’s selloff since October, says record IPOs are often a mark of excessive optimism and market tops rather than new beginnings.
