Bitcoin Hits Turbulence: SpaceX IPO Steals the Spotlight

Bitcoin's price has taken a hit, falling to the $61,800, $64,000 range, marking a 5-6% decline in just 24 hours. The catalyst? Investor funds are being redirected to the highly anticipated SpaceX IPO. This move poses a critical question for traders: Is this a short-term blip or a sign of a deeper market shift?

Timeline of Events

The sell-off began as traders shifted capital to the equity markets, drawn by the buzz surrounding the SpaceX IPO. This IPO is expected to raise a record-breaking $75 billion, making it the largest public offering in history. Thomas Park, a veteran investor, suggests that Bitcoin's allure is waning in comparison to what he calls "the market's upcoming hot ball of money trades." With Fidelity lowering the minimum account requirement for participating in the IPO from $500,000 to just $2,000, accessibility has increased, attracting even more capital away from crypto.

Meanwhile, Ethereum and XRP mirrored Bitcoin's performance, each seeing mid-single-digit losses. The correlation across these major tokens is clear, highlighting a broader trend rather than isolated incidents.

Impact on the Market

The immediate consequence of this capital rotation is evident: U.S. spot Bitcoin ETFs saw outflows of $2.43 billion in May and another $1.40 billion in early June. This isn't just a trickle, it's a torrent. Retail sentiment is frayed, and Bitcoin treasury strategies have absorbed a significant $62 billion wipeout in recent sessions. While Bitcoin's role as a corporate reserve asset remains steady, thanks to institutions like SpaceX holding a meaningful Bitcoin position, the short-term trend is undeniably bearish.

What's more, the mid-$60,000s now act as a formidable resistance, with the $70,000 mark looking increasingly distant. BTC has already erased its geopolitical risk premium, and institutional outflows continue to compress any short-term bounce potential.

Outlook

Here's the thing: If ETF outflows stabilize and the SpaceX IPO closes without further crypto rotation, Bitcoin could recover to previous levels above $66,000. But if capital continues to sit on the sidelines, expect a choppy trading range between $61,500 and $65,000. Should support break below $61,500, a slide toward $57,000-$58,000 is plausible.

For Ethereum, support is in the low to mid $3,000s, with resistance lurking near prior cycle highs. XRP remains range-bound, with horizontal support between $0.40 and $0.50. These altcoins remain high-beta plays on Bitcoin, and their future largely hinges on what BTC does next.

The number that matters today is volume and ETF flow data, far more telling than price alone.

Are traditional markets outshining crypto, or is this just another cycle in the ever-volatile world of digital assets? While some traders are looking toward infrastructure plays like Bitcoin Hyper, the overarching narrative will depend on how these financial flows evolve over the coming weeks.