Bitcoin drops from $120K peak as SpaceX IPO lures capital to AI, Liu says

Solana Foundation President Lily Liu said Bitcoin's recent weakness reflects capital rotation into AI and the SpaceX IPO, not crypto-specific problems.

Bitcoin has fallen from its $120,000 cycle peak as capital rotates out of crypto into AI and the SpaceX initial public offering, Solana Foundation President Lily Liu said.

"Capital is rotating out of crypto into high-growth opportunities, and the SpaceX IPO is a major catalyst for that shift," Liu said on CNBC on June 11. "This is less about crypto-specific problems and more about where capital sees the best risk-adjusted returns."

Over Bitcoin's 17-year history, it has risen from cents to tens of thousands of dollars, reaching as high as $120,000 during the latest cycle, Liu noted. The rotation narrative has gained traction as SpaceX prepares for what could be one of the most anticipated public listings in recent years, drawing capital from speculative assets including cryptocurrencies.

The shift in institutional preference toward AI and tech IPO opportunities could weigh on crypto inflows in the near term, potentially keeping Bitcoin below its cycle highs as investors reallocate to growth sectors with clearer regulatory pathways. The narrative may also pressure altcoins, with Ethereum and Solana facing similar headwinds from the capital rotation theme.

The SpaceX Factor

SpaceX's expected listing has become a focal point for capital rotation, with investors viewing the company as a rare opportunity to gain exposure to the private space economy. The IPO is drawing interest from both traditional institutional investors and crypto allocators seeking higher-growth alternatives during a period of regulatory uncertainty for digital assets.

Liu's comments come as Bitcoin trades well below its cycle peak, with the broader crypto market facing headwinds from shifting macro conditions and competition for capital from AI-related equities and high-profile tech listings. The Solana Foundation president's assessment aligns with a growing view that crypto's price action is increasingly tied to broader risk-asset flows rather than isolated on-chain dynamics.

Spot Bitcoin ETF flows have also moderated in recent weeks, with data showing reduced net inflows as investors weigh the opportunity cost of holding crypto versus participating in the SpaceX IPO and AI-related equity positions. The capital rotation dynamic could persist through the listing event, with Bitcoin's next leg higher potentially requiring a strong enough trigger to compete with the IPO narrative.

This article is for informational purposes only and does not constitute investment advice.