SpaceX IPO Sucks Up Liquidity, Putting Pressure on Crypto Markets

The SpaceX IPO has officially launched on the Nasdaq exchange, marking one of the largest initial public offerings (IPO) in history. The $75 billion sale values the company near $1.75 trillion at its debut.

As a result, some analysts believe that the liquidity from this IPO will be sourced from the crypto sector, leading to further selling pressure on assets like Bitcoin and Ethereum.

Spencer Hallarn, global head of over-the-counter trading at GSR, noted that crypto is acting as a 'funding currency' for the IPO wave. This means that some investors may be using their cryptocurrency holdings to fund their investments in the hot tech stocks.

The strain on crypto markets is already showing, with Bitcoin's price dropping by 21% over the last 30 days. Even Strategy, the biggest corporate Bitcoin bull, trimmed its stack for the first time since 2022.