Elon Musk and crypto prices have swung wildly over the last few weeks, with bitcoin teetering on the brink of a “big” Wall Street move.
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The bitcoin price has dropped to just over $60,000 per bitcoin, down more than 50% from its all-time high reached in October last year (even as president Donald Trump’s White House gears up for a massive crypto game-changer).
Now, as JPMorgan chief executive Jamie Dimon issues a stark crypto warning, Elon Musk’s imminent SpaceX initial public offering (IPO) has been named as the “next real catalyst” for the bitcoin price.
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SpaceX and Tesla chief executive Elon Musk could be about to trigger bitcoin’s next price boom.
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“The next real catalyst is SpaceX coming to market on June 12,” analysts with the crypto market maker Wintermute posted to X.
“It’s a clean gauge of retail and risk appetite: constructive if the placement is digested well, bearish for the whole complex if it shows exhaustion.”
That appetite appears healthy, with the rocket and artificial intelligence company’s IPO well oversubscribed with multiple institutional investors placing orders for about $10 billion or more of shares, it was reported by Bloomberg, citing anonymous sources.
SpaceX, led by billionaire Elon Musk who is on track to become the world’s first trillionaire following the IPO, is due to priced on Thursday before beginning trading on Friday.
The company, which has revealed that it holds far more bitcoin than previously thought, is offering 555.6 million shares at a fixed price of $135 each, which would raise about $75 billion, and value SpaceX at around $1.75 trillion.
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The bitcoin price has dropped back from a rebound, with bitcoin and crypto market watchers nervously watching for the “next catalyst.”
Forbes Digital Assets
The gravitational pull of the AI investment boom, with ChatGPT-maker OpenAI and Claude developer Anthropic hot on SpaceX’s heels, has sucked liquidity from the market, with some blaming these three looming IPOs and the likes of Google’s Alphabet tapping the market for $80 earlier this month for the bitcoin price sell-off.
“An overall lack of buzz around crypto as all things AI-related came under the investor spotlight, led to crypto outflows,” David Morrison, senior market analyst at Trade Nation, said in emailed comments.
“The question now is how investors position themselves following Friday’s steep selloff across semiconductor and other tech stocks. This is particularly important given this Friday’s SpaceX IPO.”