Bitcoin’s decline, which began after the Oct. 10, 2025 flash crash, entered a more volatile phase this week after Strategy (Nasdaq: MSTR), the world’s largest corporate holder of Bitcoin, revealed it sold Bitcoin last week for the first time in years.
U.S. spot Bitcoin ETFs had already recorded net outflows of $2.43 billion in May. To make situation worse, it’s only been four days into June, and investors have pulled another $1.40 billion from the funds.
Related: Analyst who called 2025 Bitcoin rally sends stark message
Jeffrey Park says investors rotating capital from Bitcoin to IPOs
But veteran investor and Bitwise advisor Jeffrey Park believes the recent weakness in Bitcoin runs deeper than Strategy’s sale or ETF outflows.
In a June 4 post on X, Park said he does not believe Bitcoin is falling because Strategy sold 32 BTC. Instead, he argued that investors are rotating capital into what he described as “the market’s upcoming hot ball of money trades.”
According to Park, some investors are moving funds out of Bitcoin to position for high-profile IPOs, including shares of SpaceX and Anthropic.
“This means in the future, the correlation breakdown will itself become the fuel,” he predicted.
What the investor is implying is that these IPOs are going to be hottest trades of the year and Bitcoin is paling in comparison.
Trending on TheStreet Roundtable:
Grayscale’s research head expects SpaceX IPO to shift Bitcoin treasury dynamics
Elon Musk‘s SpaceX is anticipated to be the largest IPO in market history. The company is reportedly seeking to raise at least $75 billion at a valuation between $1.75 trillion and $2 trillion.
When the company filed the Form S-1 with the Securities and Exchange Commission (SEC) on May 20 to make its public debut, it disclosed holding 18,712 Bitcoin on its balance sheet as of Dec. 31, 2025.
Though Park believes these IPOs are drawing capital out of Bitcoin, Grayscale’s research head Zach Pandl predicted last month that given the kind of treasury SpaceX holds, its IPO could normalize Bitcoin as a mainstream treasury asset for large, operationally complex companies.
In fact, Pandl argued that the SpaceX IPO could herald the era of diversified businesses holding Bitcoin on their balance sheets. But pure-play digital asset treasuries (DATs) like Strategy could decline over time, he predicted.
Bitcoin was trading at $64,187.50 at press time.
Related: Michael Burry drops bombshell on SpaceX, OpenAI IPOs
This story was originally published by TheStreet on Jun 4, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.