SpaceX (SPCX +19.22%) makes its debut this week on the Nasdaq exchange in the biggest initial public offering (IPO) on record, with a $75 billion sale valuing the company near $1.75 trillion at its Friday morning debut. For many investors, including those representing major financial institutions, raising that much capital means selling something, and their holdings in the crypto market are likely on the chopping block. For instance, Bitcoin (BTC +1.20%) has shed about half its value since October 2025.
The conventional wisdom says that big listings of highly hyped companies inevitably drain cash from speculative assets, especially ones that have recently underperformed, with cryptocurrency being the most obvious donor. But where will crypto prices go once the SpaceX rocket clears the pad?
Image source: Getty Images.
How the listing is expected to be a headwind for crypto
Because crypto markets operate 24/7, they are often considered the market’s ATM. Assets can sell for dollars in seconds, and then be redeployed elsewhere on faster timetables than what might be possible with money transfers into brokerage accounts.
The strain is already showing, with Bitcoin’s 21% drop over the last 30 days. Spencer Hallarn, global head of over-the-counter trading at GSR, a crypto trading group, said that crypto was acting as a “funding currency” for the IPO wave. Even Strategy, the biggest and most vocal corporate Bitcoin bull, trimmed its stack for the first time since 2022. That put a dent in the already-terrible sentiment about the coin’s near-term prospects, which could have encouraged more investors to rotate their capital out, even if everyone knows Strategy itself won’t be buying into any IPOs.
On that note, it’s important to recognize that SpaceX is only the opening act of this huge IPO season, which will put further pressure on crypto capital. Listings from OpenAI and Anthropic will probably occur within months. For anyone weighing crypto against hot tech stocks, this is probably going to be a multi-quarter drag for the digital coins rather than a passing squall.
Will any of the money come back?
Now that the SpaceX IPO is in the books, some of its early backers will likely seek to cash out their profits. It’s feasible that a sliver of that sum could rotate back into majors like Bitcoin or Ethereum. That reallocation has rescued crypto in the past, and given that the sector is currently in a bear market, there are certainly some attractive valuations available.
Today’s Change
(1.20%) $775.26
Current Price
$65396.00
Key Data Points
Market Cap
$1.3T
Day’s Range
$63663.00 – $65744.00
52wk Range
$59227.73 – $126079.89
Volume
23B
But investors absolutely should not count on any big capital rotation back into crypto. As an asset class, it’s deeply out of favor, and freshly freed-up cash could just as easily chase the next artificial intelligence listing or buy semiconductor stocks to get even more exposure to speculative upside.
Therefore, don’t dump your coins to chase IPO shares. If a deeper discount of the leading cryptocurrencies occurs — and it might — take the opportunity to load up on Bitcoin and other majors you have conviction in. Until that happens, be aware that this IPO season is going to be a rough stretch.
