The impending initial public offering of SpaceX, widely expected to become the largest in history, is already reshaping capital flows across global markets. According to multiple reports, demand for the offering has surpassed $250 billion against a $75 billion target, pushing investors to liquidate positions in assets such as Bitcoin and gold. Analysts warn the rotation is contributing to a sharp sell-off in cryptocurrencies.
Jim Cramer, host of CNBC’s Mad Money, ignited fresh debate after stating that retail and institutional investors are dumping what he called “bad money”—specifically Bitcoin and gold—to raise cash for the SpaceX IPO. His comments, however, are being met with heavy skepticism due to the well-known “Inverse Cramer” phenomenon, where traders often bet against his predictions. Despite the doubt, the sheer scale of the SpaceX order book suggests real liquidity drainage is occurring.
Andri Fauzan Adziima, research lead at Bitrue Research Institute, described the market dynamic as a classic pre-IPO liquidity squeeze. He noted that large-scale offerings frequently prompt investors to sell risk assets, and the current crypto downturn—which has wiped over $180 billion from the total market capitalization in a week—coincides with the final pricing phase of the SpaceX IPO. While technology stocks have also declined, the impact on cryptocurrencies has been especially pronounced, partly due to the sector’s high retail participation and sentiment sensitivity.
In parallel, major crypto exchanges have moved aggressively to capture trading demand linked to SpaceX. Binance, Coinbase, Kraken, and Bybit have all listed pre-IPO perpetual futures contracts tied to the company. Binance reported cumulative volumes of $2.1 billion within 18 days of launch, while decentralized platforms like Hyperliquid saw $70 million in 24-hour volume and open interest exceeding $115 million. These products imply a post-IPO valuation near $1.97 trillion, underscoring the intense speculation.
Despite the short-term pressure, analysts suggest the capital rotation is temporary and that crypto markets could stabilize once the IPO allocation process concludes. The event serves as a reminder of how mega-cap equity listings can ripple through alternative asset classes, particularly when investor euphoria reaches historic levels.
