Why are analysts linking the SpaceX IPO to Bitcoin's recent weakness?

Some analysts believe SpaceX's planned $75 billion IPO could attract capital that might otherwise be invested in cryptocurrencies. The concern is that both markets compete for the same pool of growth-oriented and speculative investment capital.

How much has Bitcoin fallen recently?

Bitcoin has declined about 14% over the past week, falling to around $61,750. The broader cryptocurrency market has also weakened, with total market capitalisation slipping to roughly $2.2 trillion.

What is happening with Bitcoin ETF flows?

US spot Bitcoin ETFs have recorded approximately $4.57 billion in net outflows over the past four weeks. This trend suggests institutional demand has weakened as investors reduce exposure to the asset class.

Why do Bitcoin ETF outflows matter?

ETF flows are often viewed as a gauge of institutional investor sentiment. Sustained outflows can create selling pressure and indicate reduced confidence among large investors.

What does the Crypto Fear & Greed Index signal right now?

The index recently registered a reading of 9, placing the market in "extreme fear" territory. Such readings typically indicate investors are highly cautious and risk appetite remains weak.

Could the SpaceX IPO really hurt Bitcoin?

It is possible, but not guaranteed. Analysts argue the IPO could temporarily divert liquidity from crypto markets, although there is currently no direct evidence linking Bitcoin ETF outflows to anticipated SpaceX demand.

Image for illustrative purposes only. Not a real photo.

SpaceX IPO fears add pressure to struggling Bitcoin

Q: How much have Bitcoin ETF assets declined?

According to the data cited, total assets held by US spot Bitcoin ETFs fell from $104.29 billion in mid-May to $77.58 billion by June 9. This reflects both investor withdrawals and falling Bitcoin prices.

Written by Jon CuthbertPublished Jun 11, 2026, 5:09 AM

Bitcoin traded near $61,750 as analysts warned that SpaceX's anticipated public offering could draw capital away from cryptocurrencies at a time when market sentiment and institutional demand are already weakening.

The world's largest cryptocurrency has fallen about 14% over the past week, while the broader crypto market capitalisation declined to approximately $2.2 trillion as traders reduced risk exposure.

Investor sentiment remained deeply negative, with the Crypto Fear & Greed Index registering a reading of 9, signalling extreme fear amid ongoing macroeconomic uncertainty and geopolitical tensions.

Institutional demand has also weakened, with US spot Bitcoin exchange-traded funds recording roughly $4.57 billion in cumulative net outflows over the past four weeks, while total ETF assets under management fell from $104.29 billion in mid-May to $77.58 billion by June 9.

“We’ve got to find $75 billion for this IPO, and it’s got to come from somewhere,”

Said Spencer Hallarn, global head of over-the-counter trading at GSR, referring to the reported size of SpaceX's planned offering.

Analysts told Reuters that SpaceX's expected $75 billion IPO could compete with cryptocurrencies for the same pool of growth-oriented capital, particularly as artificial intelligence-related investments continue attracting strong investor interest.

With ETF outflows continuing, technical indicators remaining bearish and onchain data showing no clear signs of market capitulation, analysts say Bitcoin could face additional liquidity pressures if the SpaceX listing proceeds as expected.

At the time of reporting, Bitcoin price was $62,646.85.