Analysts and investors are bracing for the June 12 market debut of SpaceX and its impacts on cryptocurrencies.
Some analysts say the initial public offering (IPO) of Elon Musk’s commercial space company has already impacted Bitcoin (BTC) and other digital assets.
Those analysts say that recent outflows of more than $5 billion U.S. from Bitcoin exchange-traded funds (ETFs) have been due to investors pulling funds to participate in the SpaceX IPO.
The optimistic view is that capital will return to Bitcoin ETFs and cryptocurrencies once the SpaceX IPO is completed, helping to lift Bitcoin’s price above its current level of $63,000 U.S.
On the flipside, bearish analysts say that the record-setting SpaceX IPO could serve as a market top that causes the artificial intelligence (A.I.) trade to collapse, sending stocks and crypto into a tailspin.
Naysayers note that previous large IPOs such as Saudi Aramco, Alibaba (BABA), and Visa (V) each occurred before market tops in the S&P 500 index.
If the pattern repeats, volatility in cryptocurrencies could worsen following the SpaceX IPO, notably for Bitcoin, which is at risk of falling below the key support level of $60,000 U.S.
SpaceX is scheduled to begin trading on the Nasdaq (NDAQ) exchange on June 12 under the ticker symbol “SPCX.”
With a valuation of $1.77 trillion U.S. and raising $75 billion U.S. from the share sale, SpaceX is the largest IPO in Wall Street’s history.
