Bitcoin Bleeds as SpaceX IPO Siphons Liquidity: Can BTC Reclaim $65K?

Bitcoin (BTC) is under intense selling pressure, sliding to the $61,800–$64,000 range as a historic SpaceX IPO draws massive capital from crypto markets. The leading cryptocurrency shed 5–6% in 24 hours, with Ethereum and XRP following suit, as traders rotate into equities ahead of what could be the largest public offering in history. The question on every investor's mind: Can Bitcoin reclaim $65,000, or is the low $60,000s the new normal?

The SpaceX IPO Effect

SpaceX has formally filed for an IPO targeting roughly $75 billion in proceeds at a valuation near $1.75 trillion, eclipsing Saudi Aramco to become the biggest public offering ever. Fidelity lowered its minimum account requirement from $500,000 to just $2,000, opening the floodgates for retail participation. Veteran investor Thomas Park pointed directly at the IPO pipeline as the culprit, arguing that traders are “moving funds out of Bitcoin to position for high-profile IPOs,” calling them “the market’s upcoming hot ball of money trades.”

This capital rotation is evident in spot Bitcoin ETF flows. U.S. spot Bitcoin ETFs bled $2.43 billion in May alone, with another $1.40 billion exiting in the first days of June. The selling pressure is relentless, and BTC’s short-term breakdown from its recent range confirms a bearish shift in momentum.

A Paradox: SpaceX Holds Bitcoin

Interestingly, SpaceX’s IPO filing revealed a meaningful Bitcoin treasury position, suggesting that the long-term institutional narrative around BTC as a corporate reserve asset remains intact. This creates a tension: short-term flows are exiting crypto for equities, but the very company drawing that capital is itself a Bitcoin holder. This paradox sets up a critical inflection point. If the IPO frenzy subsides and liquidity returns, Bitcoin could see a sharp rebound as traders realize the underlying adoption story hasn’t changed.

Technical Outlook: Key Levels to Watch

From a technical perspective, Bitcoin is testing the lower boundary of its multi-month range near $61,500. A breakdown below this level could open the door to $58,000 or lower. However, the $60,000–$61,000 zone has historically acted as strong support. On the upside, reclaiming $65,000 would signal a return to the range and potentially trigger a squeeze toward $68,000. The Relative Strength Index (RSI) is approaching oversold territory, which could attract dip buyers.

Altcoin Rotation: Hyperliquid Steals the Spotlight

While Bitcoin struggles, some altcoins are thriving. Hyperliquid (HYPE) has emerged as one of crypto’s strongest performers, rising 94% in three months to a fully diluted value exceeding $65 billion. The decentralized trading platform has expanded beyond perpetual futures into commodities, forex, pre-IPO companies, and prediction markets. Asset managers have launched HYPE ETFs, and analysts like Michaël van de Poppe see potential for $100 or more if altcoin demand strengthens. This rotation suggests that while Bitcoin faces headwinds, capital is finding opportunities elsewhere in the crypto ecosystem.

What This Means for Bitcoin

The current sell-off is not a fundamental rejection of Bitcoin but a liquidity-driven rotation. The SpaceX IPO is a once-in-a-generation event that will eventually settle, and when it does, the capital could flow back into crypto. However, the near-term outlook remains cautious. Traders should watch for a reclaim of $65,000 as a bullish signal; failure to do so could prolong the consolidation in the low $60,000s.

1. Bitcoin is under pressure from capital rotation into the SpaceX IPO, with spot ETFs bleeding $3.8B in six weeks.
2. SpaceX’s Bitcoin treasury reveals long-term institutional confidence, creating a paradox with short-term outflows.
3. Technical support at $61,500 is critical; a breakdown could lead to $58,000, while reclaiming $65,000 signals recovery.
4. Altcoins like Hyperliquid are outperforming, indicating selective capital deployment within crypto.

Sources:
CryptoNews – Bitcoin Price Selloff Ahead of SpaceX IPO
CoinMarketCap – Hyperliquid HYPE Price Rally