Fresh U.S. inflation data on Thursday delivered a mixed reading, while the European Central Bank raised interest rates for the first time in nearly three years, signaling a renewed tightening cycle in Europe.
Markets now shift to Friday’s session, dominated by the long-awaited SpaceX IPO, set to be one of the largest public listings in history. The company priced shares at $135, raising $75 billion and surpassing Saudi Aramco’s 2019 record.
SpaceX sold 555.6 million shares at the offering price, implying a fully diluted valuation of about $1.8 trillion. The company generates roughly $19 billion in annual revenue from launches, government contracts, and Starlink, but the valuation reflects elevated growth expectations. It also holds 18,712 bitcoin, valued at nearly $1.2 billion.
Risk assets rallied into the event after geopolitical developments boosted sentiment. Following reports that President Trump called off planned strikes on Iran amid diplomatic progress, equities surged, with the Nasdaq up 2.4% and the S&P 500 gaining 1.8%. Bitcoin rose to around $63,500, up roughly 2.5% over 24 hours.
Crypto-related equities also moved higher, including Coinbase (+3.6%), Galaxy Digital (+8.8%), and Strategy (+4.3%).
Earlier in the session, Trump’s post on Truth Social confirming the cancellation of military action pushed markets to intraday highs, pressured oil lower by about 3%, and pulled Treasury yields down, while Bitcoin held near $63,400.
Investor demand for SpaceX has been extremely strong. BlackRock reportedly placed orders worth at least $5 billion, while retail demand has topped $70 billion, according to Bloomberg. However, allocations are expected to be limited, leaving most orders unfilled. Some investors have funded participation by rotating out of AI and semiconductor stocks, contributing to weakness in those sectors.
Bitcoin market signals remain mixed. The Coinbase Premium Index briefly turned deeply negative, indicating heavier selling on U.S. exchanges versus offshore venues, even as prices dipped below $63,000 following producer price data.
ETF flows remain a key headwind, with U.S. spot Bitcoin ETFs recording $213.85 million in outflows in a single day and more than $5.7 billion in cumulative redemptions since mid-May.
Some analysts warn the correction may not be complete, with downside risks still pointing toward a possible retest of $50,000 as capital rotates into IPO and AI-linked trades while macro and geopolitical uncertainty persists.
Corporate Bitcoin treasury activity has also weakened, with several publicly listed firms selling portions of holdings to manage debt and liquidity, adding incremental supply to the market.
On the macro side, U.S. producer price data delivered a mixed signal, briefly weighing on Bitcoin before stabilization near $62,500. In Europe, the ECB’s rate hike marked a clear policy shift driven by persistent inflation pressures.
Gold slipped to a six-month low, while Bitcoin held above $63,000, with both assets pressured by higher rate expectations.
Derivatives positioning remains elevated, with Bitfinex margin longs rising above 90,000 BTC for the first time since late 2023, signaling increased leverage despite ongoing volatility.
