Bitcoin remains under pressure near $61,750 as analysts warned that SpaceX’s upcoming IPO could divert funds from the crypto market, with ETF outflows and weak sentiment already weighing on the market.
According to market data, Bitcoin ($BTC) Prices have fallen by about 14% over the past week, and the cryptocurrency’s market capitalization has fallen by another 1.1% in the past 24 hours to $2.2 trillion. This decline comes as traders continue to reduce their exposure across the derivatives market, with Bitcoin open interest decreasing by 0.57% to approximately $45 billion.
Sentiment also deteriorated sharply. Alternative Crypto Fear & Greed Index data showed a reading of 9, marking a week that once again finds itself in extreme fear territory as investors remain cautious amid heightened macroeconomic and geopolitical uncertainty.
Bitcoin sentiment worsens due to increased ETF outflows
Demand from institutional investors is also showing signs of weakening. The US Spot Bitcoin ETF has recorded net outflows of $168.8 million so far this week, according to data from SoSoValue. The product also saw withdrawals of $1.72 billion, $1.42 billion, and $1.26 billion over the past three weeks, bringing the total outflows over the four-week period to approximately $4.57 billion.
The continued withdrawals coincided with a decline in the total net assets held by Spot Bitcoin ETFs. Total assets under management fell from $104.29 billion in mid-May to $77.58 billion as of June 9, according to SoSoValue.
Additional on-chain data suggests that the market may not have reached the capitulation stage typically associated with the bottom of major cycles.
In its June 10 market update, CryptoQuant noted that realized losses totaled approximately $187,000. $BTC has fallen below approximately 400,000 in the past 30 days $BTC It came true during the February panic and was well below the 1.2 million mark. $BTC Recorded after FTX collapse.
“Historically, big bottoms form after sellers have dried up. The data shows we are not there yet.”
Technical indicators also remain weak. Bitcoin is trading near the Murray Mathematics support zone around $62,500, but a break below the nearby $59,375 support level could expose the market to more severe downside risks.
Momentum indicators continue to favor sellers, and the MACD remains in bearish territory after its recent negative crossover. The widening gap between the MACD and the signal line suggests that the downside momentum has not yet completely weakened, increasing the risk of further losses if buyers fail to defend key support levels.
SpaceX IPO could compete for cryptocurrency liquidity
Against this backdrop, analysts are increasingly focusing on the potential impact of SpaceX’s long-awaited public launch.
The aerospace company founded by Elon Musk is reportedly preparing a $75 billion initial public offering at an estimated valuation of about $1.75 trillion. Reuters reported that about 30% of the offering could be reserved for retail investors, an unusually large allocation for an IPO of this size.
Some market participants believe the listing could attract funds that could potentially flow into cryptocurrencies.
“Cryptocurrency is the currency that will fund a lot of this,” Spencer Hallan, global head of OTC trading at GSR, told Reuters. “We have to find $75 billion for this IPO, and it has to come from somewhere.”
Thomas Puch, CEO of crypto firm INDIGO, also told Reuters that the offering could divert funds away from digital assets in the short term as both markets compete for the same pool of risk capital.
Artificial intelligence investments are now a more attractive deal for many growth-focused investors, Puech said.
While there is no direct evidence that recent Bitcoin ETF outflows are being directed toward SpaceX stock, analysts say the timing of the IPO could create new headwinds for the digital asset.
Bitcoin could remain vulnerable to additional liquidity pressures in the coming weeks, with institutional demand weakening, sentiment in extreme fear territory, and on-chain data suggesting seller exhaustion is yet to emerge.
