SpaceX's impending IPO is expected to raise $75 billion at a valuation of near $1.75 trillion, with demand reportedly exceeding $250 billion. This could trigger a liquidity squeeze in both stock and crypto markets as investors sell their existing holdings to secure the IPO.
The company's listing on the Nasdaq-100 within 15 trading days would force index funds to buy an estimated $15, $30 billion of SpaceX shares, which they typically achieve by selling other large positions such as Nvidia, Microsoft, Apple, and other mega-cap technology stocks. This could exacerbate a liquidity squeeze and drive down stock prices.
The crypto market may be particularly vulnerable due to the overlap between investors interested in high-growth tech companies and those who allocate capital to Bitcoin and other digital assets. If these investors need funds quickly, they can move them without asking permission, potentially driving down crypto prices even further.