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Bitcoin remained under pressure near $61,750 as analysts warned that the upcoming SpaceX IPO could divert capital away from the crypto market at a time when ETF outflows and weak sentiment are already weighing on prices.
Bitcoin fell 14% over the past week, while the total cryptocurrency market capitalization slipped another 1.1% over the past 24 hours to $2.2 trillion. The move coincided with traders reducing exposure across derivatives markets, with Bitcoin open interest falling 0.57% to approximately $45 billion.
U.S. spot Bitcoin ETFs have also recorded roughly $4.57 billion in net outflows over the past four weeks, signaling weaker institutional demand. SoSoValue data shows net outflows of $168.8 million so far this week, alongside withdrawals of $1.72 billion, $1.42 billion, and $1.26 billion during the previous three weeks.
The sustained withdrawals have coincided with a decline in total net assets held by spot Bitcoin ETFs. SoSoValue reported combined assets under management falling from $104.29 billion in mid-May to $77.58 billion by June 9.
Sentiment has deteriorated sharply. Alternative’s Crypto Fear & Greed Index showed a reading of 9, placing Bitcoin in extreme fear territory for another week amid growing macroeconomic and geopolitical uncertainty.
Additional on-chain indicators suggest the market may not have reached a capitulation phase typically associated with major cycle bottoms. In a June 10 market update, CryptoQuant said realized losses totaled approximately 187,000 BTC over the past 30 days—below the roughly 400,000 BTC realized during the February panic and well below the 1.2 million BTC recorded following the FTX collapse.
Historically, major bottoms form after seller exhaustion, and the data suggests that threshold has not been reached yet.
Technical indicators also remain weak. Bitcoin is trading near the Murrey Math support zone around $62,500. A break below the nearby $59,375 support level could expose the market to deeper downside risks.
Against this backdrop, analysts are focusing on the potential impact of SpaceX’s planned public debut. The aerospace company founded by Elon Musk is reportedly preparing a $75 billion public offering at a projected valuation of approximately $1.75 trillion. Reuters reported that about 30% of the offering could be reserved for retail investors.
Some market participants believe the listing could attract capital that might otherwise flow into cryptocurrencies. “We’ve got to find $75 billion for this IPO, and it’s got to come from somewhere.”
Thomas Puech, chief executive of crypto firm INDIGO, told Reuters that the offering could divert funds away from digital assets in the short term because both markets compete for the same pool of risk capital. Puech also said artificial intelligence-related investments currently represent a more attractive trade for many growth-focused investors.
While there is no direct evidence that recent Bitcoin ETF outflows are being redirected toward SpaceX shares, analysts say the IPO’s timing could add another headwind for digital assets. With institutional demand weakening, sentiment stuck in extreme fear, and on-chain data not yet indicating seller exhaustion, Bitcoin may remain vulnerable to additional liquidity pressures in the weeks ahead.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
