Recent speculation on social media suggested that Bitcoin’s latest price drop may have been caused by investors selling crypto to free up cash for SpaceX’s highly anticipated IPO. However, available blockchain data does not provide strong evidence to support that theory.
The discussion began after Bitcoin fell about 16% during the same period that SpaceX started promoting its upcoming public offering. Bitcoin briefly dropped below $60,000 before recovering to around $61,000.
Many traders assumed investors were cashing out of crypto to participate in what could become one of the largest IPOs in history. However, data from CryptoQuant tells a different story.
One of the easiest ways to track money leaving the crypto market is by monitoring stablecoins such as USDC and Tether. Investors who sell Bitcoin often move funds into stablecoins before converting them into cash.
According to CryptoQuant, there were no unusual spikes in USDC or Tether withdrawals during the recent Bitcoin decline. Stablecoin activity remained within the normal range seen over the past several months.
In fact, the largest stablecoin outflows occurred before Bitcoin’s latest drop. The data showed $2.5 billion in USDC leaving exchanges on May 22 and $3.6 billion in Tether withdrawals on May 20.
At the same time, blockchain data revealed something that usually points in the opposite direction of panic selling. More than 66,000 Bitcoin and nearly 2.5 million Ether were withdrawn from exchanges in a single day, making it one of the largest withdrawal events of the year.
When investors move cryptocurrencies off exchanges and into private wallets, it often suggests they are holding assets for the long term rather than preparing to sell them. Typically, sellers move coins onto exchanges before selling.
Meanwhile, interest in SpaceX’s IPO continues to grow. Reports indicate that the company plans to raise around $75 billion and is targeting a valuation of approximately $1.75 trillion. Demand is reportedly already close to $150 billion, roughly double the amount being offered.
The IPO has attracted significant attention because retail investors may receive broader access than is typical for large public offerings. Major brokerage platforms are expected to make shares available to individual investors.
Despite the lack of evidence from blockchain activity, there is still one important blind spot. Investors using platforms such as Robinhood or Coinbase can sell crypto and keep the cash inside their brokerage accounts without creating visible blockchain transactions.
Because of this, analysts say the theory cannot be completely ruled out until brokerages release more detailed trading data.
One area where selling pressure has been clearly visible is in cryptocurrency investment funds. Spot Bitcoin ETFs recorded more than $4.3 billion in outflows during a record 13-session streak of withdrawals through early June. Ether ETFs also experienced a lengthy run of investor withdrawals before the trend finally ended.
For now, ETF outflows remain the clearest confirmed source of selling pressure, while claims that investors sold Bitcoin to buy SpaceX shares remain largely speculative and unsupported by available on-chain data.
