Online chatter has connected Bitcoin’s latest price decline to retail investors scrambling for a piece of SpaceX’s massive IPO. However, a closer look at blockchain data doesn’t clearly support a mass cash-out from crypto.
Bitcoin’s sharp drop coincided with SpaceX’s IPO marketing push, leading some to speculate that traders sold BTC to free up funds. Yet, stablecoin flows on exchanges remained normal during the selloff, according to CryptoQuant data. The largest USDC and USDT outflows actually occurred before Bitcoin’s decline, on May 22 and May 20 respectively.
Interestingly, Bitcoin and Ethereum saw significant withdrawals from exchanges on the day of the drop—66,470 BTC and 2.49 million ETH moved off exchanges. Such moves often indicate buyers taking custody, not panic selling. Sellers typically deposit coins to exchanges before selling.
SpaceX is planning a record-breaking IPO, targeting a $75 billion raise at a $135 share price and a near $1.75 trillion valuation. Retail investors are expected to get a large allocation through platforms like Robinhood and Fidelity, with demand reportedly reaching $150 billion. The IPO is slated for June 11 pricing and trading on Nasdaq as SPCX.
On-chain data has limitations. A user could sell crypto on Robinhood or Coinbase and keep the dollars within those platforms, not moving coins on the blockchain. So, the crypto-to-SpaceX theory remains unproven until brokerages release their own data. What is clear is that spot Bitcoin ETFs saw over $4.3 billion in outflows during a 13-session streak, and Ethereum ETFs also suffered prolonged redemptions, confirming selling pressure from institutional products.