IPO SpaceX and a sell-off in the crypto market


Investors’ demand for SpaceX’s initial public offering exceeded $250 billion. Elon Musk’s net worth reached $982 billion, bringing him closer to U.S. dollar trillionaire status. Investors are selling digital assets to buy Musk’s shares. The outflow of liquidity sparked a cash crunch in the crypto market and became one of the main reasons Bitcoin fell 37% below its January highs.

An indirect risk comes from SpaceX’s own reserves. The company holds more than 18,000 BTC on its balance sheet. After the IPO, the board of directors will decide what to do with them. If they decide to lock in profits and sell these assets to improve quarterly reporting, it would create additional pressure on Bitcoin’s price.
BTC0.58%
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