Bitcoin slipped below $60,000 on June 5, marking its first drop beneath this threshold since September 2024. The downturn came alongside a broad sell-off across technology stocks, with the Nasdaq Composite slumping 4.2% to post its worst single-day performance of 2026. Over the past month, Bitcoin has lost more than 20% of its value. While weak market sentiment has weighed on digital assets, SpaceX’s upcoming initial public offering is widely viewed as a major factor driving the crypto sell-off.
Access to Bitcoin has expanded dramatically over the years. Early investors relied primarily on offline cold wallets for storage. Later, user-friendly hot wallets on mainstream trading platforms drew in broader participation. The arrival of institutional products further opened the floodgates. BlackRock’s Bitcoin trust ETF has stood out as a dominant force in the market. As of June 4, the fund held 3.7% of Bitcoin’s total permanent supply. Available through brokerage accounts and individual retirement accounts, the ETF has attracted massive capital flows and greatly boosted overall demand for the cryptocurrency.
This growing institutional presence has become a double-edged sword. Unlike traditional companies, Bitcoin generates no earnings, and its price is purely driven by supply and demand. Fund flows of Bitcoin ETFs have therefore become a critical gauge of market appetite. The vehicle has faced persistent outflows since selling pressure intensified in November 2025. Redemptions have accelerated month after month, with substantial capital exiting the ETF in the first few days of June. To meet withdrawal requests, the fund has sold Bitcoin on the spot market, creating further downward pressure on prices.
Opportunity cost lies at the heart of the impact from SpaceX’s IPO. Bitcoin has failed to serve as an effective inflation hedge and yields no passive income, leaving many investors disappointed by its prolonged decline. Since SpaceX filed for a public listing with regulators on May 20, Bitcoin has fallen 20.7%.
Valued at $1.77 trillion, SpaceX plans to raise $75 billion through its IPO, set to rank among the world’s largest public debuts. Its relaxed lock-up provisions will significantly expand tradable shares in the near term. Though the stock is not expected to join the S&P 500 for at least 12 months post-listing, it is likely to be added to the Nasdaq 100 shortly after going public, making it a top pick for a wide range of index-tracking ETFs and continuously siphoning market capital.
SpaceX is not the only high-profile tech firm lining up for an IPO this year. A wave of blockbuster listings is diverting funds that previously flowed into Bitcoin. As Bitcoin has become deeply tied to Wall Street sentiment rather than just crypto community dynamics, its appeal has faded amid the rush for newly public stocks.
Market observers note that the IPO frenzy is not the sole cause of Bitcoin’s slump, but it has clearly exacerbated price pressures. Investors are now reassessing Bitcoin’s role within diversified portfolios. Those choosing to allocate capital to the cryptocurrency are advised to adopt a long-term investment horizon of at least five years and combine it with other asset classes to mitigate volatility amid ongoing market swings.
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