For crypto, SpaceX's stock market debut could go either way
Key takeaways
- The months of waiting have ended, and Space X is set to begin trading on Nasdaq today after investors pumped $75 billion into the largest IPO in history.
- If so, some of that capital could find its way back into crypto in the coming days, providing a lift to valuations.
- On one hand, a blockbuster debut signals broad market confidence, potentially drawing fresh capital and sustaining the risk-on mood that tends to lift bitcoin and the wider crypto market alongside equities.
The months of waiting have ended, and Space X is set to begin trading on Nasdaq today after investors pumped $75 billion into the largest IPO in history. What happens next could ripple across financial markets, including crypto.
One theory making the rounds is that recent outflows of over $5 billion from bitcoin BTC$63,637.23 ETFs, which dragged the price of the largest cryptocurrency below $60,000, were partly driven by investors pulling funds to participate in the IPO. If so, some of that capital could find its way back into crypto in the coming days, providing a lift to valuations.
The IPO cuts both ways. On one hand, a blockbuster debut signals broad market confidence, potentially drawing fresh capital and sustaining the risk-on mood that tends to lift bitcoin and the wider crypto market alongside equities.