How are you all, I hope everyone is well.
Today I want to discuss an important topic that has been in the news in the tech and crypto markets recently. The topic is the possible IPO of Elon Musk's company SpaceX and what kind of impact it could have on the market, especially on Bitcoin and large tech stocks.
SpaceX is currently planning an IPO of about $ 75 billion, as various reports have mentioned. If it is implemented, it will be one of the largest public listings in recent times. In general, the IPO of a large company is an important event not only for that company, but also for the entire stock market, because it can lead to major changes in investor fund flows.
Currently, a group called the “Magnificent 7” is very well known in the tech market, which includes Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta and Tesla. If SpaceX is quickly included in the Nasdaq 100 index, this group could practically become the “Magnificent 8”. This will require index funds to rebalance their portfolios, which could create new buying and selling pressure in the market.
Another important aspect of SpaceX is its Bitcoin holdings. According to reports, the company holds about 18,712 BTC, which is worth an estimated $1.45 billion. Similarly, Tesla also has a significant amount of Bitcoin. Together, these two companies are creating a big example of the use of Bitcoin at the corporate level, which could influence many other companies in the future.
However, according to some analysts, if SpaceX is added to the Nasdaq 100 quickly, then large index funds will have to rebalance their portfolios. As a result, they may sell some existing large tech stocks, such as Nvidia, Apple or Microsoft, to buy new stocks. This process is being referred to by many as “capital rotation”, which could create some pressure on the tech market in the short term.
Bitcoin and tech stocks have been showing a strong correlation in recent times. Generally speaking, when the tech market does well, Bitcoin does well, and when the tech market is under pressure, Bitcoin is also affected. So if the SpaceX IPO creates any kind of volatility in the tech market, its impact could also be seen in the Bitcoin market.
All in all, SpaceX's potential IPO is not just an event for one company, but it could be a significant event for the entire tech market and crypto market. However, its actual impact will depend on the IPO's execution, valuation, and overall market conditions.