- SpaceX IPO four times oversubscribed, pulling retail capital from the same pool that drives crypto.
- Bitget CEO says crypto lost to a better story as Kraken, Ledger, and Grayscale all paused IPOs.
- Bitcoin ETF outflows exceeded $2 billion in May as semiconductor stocks surged 170% simultaneously.
Bitcoin is trading at $62,591 at press time, down approximately 50% from its October all-time high of $126,223. Last week alone, it fell 15%, its worst weekly performance since the FTX collapse in November 2022. The SpaceX IPO arriving at exactly this moment is not a coincidence, according to analysts closely watching capital flows.
Analyst Michaël van de Poppe opened up about the crash and said the type of investor willing to allocate funds into crypto is completely captivated by the SpaceX IPO. There is no appetite for crypto at all until these other opportunities pass and a regime change arrives.
The $75 Billion That Has to Come From Somewhere
As per reports, SpaceX’s $75 billion offering has set aside up to 30% of shares, approximately $22.5 billion, specifically for retail investors, an unusually large retail allocation for a deal this size. That decision is pulling money directly from the same pool of capital that drives crypto sentiment.
Sources described crypto as a funding currency for the IPO, noting that $75 billion has to come from somewhere. The SpaceX deal is already more than four times oversubscribed, according to reports, meaning retail demand is running extremely hot.
Crypto Lost to a Better Story
Bitget CEO Gracy Chen framed the situation with unusual directness. 2026 was supposed to be crypto’s public listing era. Kraken paused its IPO, Ledger paused, Consensys paused, and then Grayscale paused. Meanwhile, Anthropic is going public at a $965 billion valuation, and SpaceX is pricing at $1.77 trillion.
Institutional investors do not have infinite allocation capacity, and they made a choice this year. Crypto did not lose to bad conditions; it lost to a better story.
The Pressure From Multiple Directions
The capital rotation story is compounding existing structural problems. Bitcoin ETF outflows exceeded $2 billion in May. Strategy, the largest corporate Bitcoin holder, sold holdings for the first time since 2022.
US semiconductor stocks have surged 170% while crypto has declined sharply. Growing expectations of a Federal Reserve rate hike could push investors further toward yield-generating assets.
Analysts described the near-term outlook as difficult, with tailwinds for crypto hard to identify while hot IPOs and rate hike expectations compete for the same capital.
The CLARITY Act advancing through the Senate remains the most credible structural catalyst for recovery. But until the current IPO wave absorbs its capital and the regulatory picture fully clarifies, the market is choosing rockets and AI over Bitcoin.
Related: SpaceX-Themed Tokens Enter CoinMarketCap Top 10 Trending List
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