Bitcoin without investors: Why IPOs are winning attention

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A rough patch for Bitcoin

Bitcoin has suffered another sell-off. On Wednesday, its price fell to $65,400, the lowest level since February. The drop coincided with strength in the stock market: the S&P 500 and Nasdaq 100 hit record highs, while Japan’s Nikkei 225 also rose to an all-time high.

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Among the main reasons for the sell-off are mass liquidations of leveraged positions and another escalation around Iran. But the main reason may run deeper: investors are pulling money out of cryptocurrencies and moving it to where they currently see more potential. For example, into major IPOs, for which funds and private investors may be freeing up capital in advance.

Simply put, Bitcoin is now competing not only with Ethereum or other cryptocurrencies. It is competing with the stock market, technology companies, and upcoming listings that promise investors rapid growth. Against this backdrop, BTC becomes less attractive, especially when its price breaks through key support levels.

Where the money is going

There is no unlimited amount of free money in the market. If an investor wants to participate in a major new deal, they often have to sell something else. In such situations, the most volatile assets come under pressure first — especially cryptocurrencies.

This is how capital rotation works. Money does not disappear from the market; it moves from one idea to another. In recent years, Bitcoin often benefited from interest in risky assets: investors bought it alongside tech stocks, startups, and other growth instruments. But now the same mechanism is working against it.

When new strong stories emerge in the stock market, some investors start preparing capital for them in advance. They may reduce positions in cryptocurrencies, take profits, or simply lower risk in their portfolios. For Bitcoin, this means fewer buyers and more pressure on the price.

Which IPOs are now in focus

But which events have distracted investors? The main intrigue now is not one listing, but several major IPOs at once. These are companies that already have strong demand, high expectations, and a clear growth story around them.

The biggest example is SpaceX. According to Reuters, Elon Musk’s company could raise about $75 billion and go public at a valuation of around $1.75 trillion. If that happens, the listing would become the largest in history and surpass Saudi Aramco’s IPO, which raised $25.6 billion in 2019.

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Another candidate is OpenAI. The company behind ChatGPT is preparing to confidentially file for a U.S. IPO. It was previously valued at $852 billion, while preliminary discussions pointed to a possible valuation of up to $1 trillion.

The third major case is Anthropic, the developer of the Claude chatbot. The company has already confidentially filed for a U.S. IPO and is competing with OpenAI for capital, customers, and computing power. In its latest private funding round, its valuation reached $965 billion, which only increased interest in its future listing.

How Bitcoin can become independent

To depend less on the stock market, Bitcoin needs its own strong driver. Right now, it often moves like a regular risky asset: when investors are willing to take risks, BTC rises alongside technology stocks; when more interesting ideas appear in the market, money moves there.

A new inflow into spot Bitcoin ETFs could change the situation. If major funds start actively buying BTC again through exchange-traded instruments, this would create steady demand and help the market depend less on traders’ short-term sentiment.

Another important factor is Fed policy. If investors start expecting rate cuts, interest in risky assets may grow. But for Bitcoin, it is important not just to rise together with the broader market, but to show that demand for it exists separately from the general race for stocks and IPOs.

For that, the market needs a clear narrative. For example, a return of the idea of Bitcoin as “digital gold,” protection against inflation, and interest from institutional investors. Until that is enough, BTC will keep competing with the stock market for money and losing at moments when investors see brighter ideas elsewhere.

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