SpaceX hype collapses with $600 million still carrying leveraged bets before a massive share unlock

Here is the latest from the digital-asset markets: SpaceX's record-setting market debut has completed a sharp reversal just over a month after the rocket and satellite company raised $85. 7 billion in the largest initial public offering in history. Data from Yahoo Finance shows that SPCX shares fell to a post-listing low of $132.

28 Wednesday, slipping below their $135 offering price for the first time before recovering to close at $135. The stock has lost about 40% since reaching $225. 64 during its first week of trading, cutting SpaceX's market value from more than $2.

Market Dynamics

8 trillion at its peak to roughly $1. The downturn has erased hundreds of billions of dollars from founder Elon Musk’s fortune. The value of his roughly 42% SpaceX stake has fallen from about $1.

2 trillion at the stock’s peak to around $760 billion, while the Bloomberg Billionaires Index valued his overall wealth at about $856 billion Thursday, down from $1. Investors who chased the shares after their $150 opening price are sitting on about a 10% loss, while those who bought near the June peak are down about 40%. Retail investors received an unusually large allocation in the IPO, accounting for about 20% of the offering, and bought hundreds of millions of dollars more in the stock’s first days of trading.

Traders betting against SpaceX have moved in the opposite direction. Short sellers accumulated an estimated $8. 7 billion in paper profits as the shares fell below their offering price, according to data from Ortex Technologies.

Market Impact

The losses mark a rapid turn from the excitement that followed SpaceX's June listing, when a limited supply of publicly available shares, heavy retail participation and demand from index-tracking funds propelled the company above $2 trillion. Yet the speculation surrounding that rally has not entirely disappeared. Hundreds of millions of dollars remain tied to SpaceX through leveraged cryptocurrency contracts, while tokenized versions of the stock continue circulating on blockchain networks.

Crypto traders retain leverage after the stock frenzy fades The selloff has reduced activity on crypto exchanges without clearing out the large pool of SpaceX positions accumulated during the stock's opening surge. SpaceX-linked perpetual futures held about $615 million in open interest early Thursday, CoinGlass data showed. Traders generated roughly $1.

6 billion in volume over the preceding 24 hours, down from more than $10 billion near the height of the post-IPO rally. SpaceX Futures Volume Across Crypto Trading Platforms (Source: CoinGlass) Meanwhile, SPCX Open interest has declined more gradually. Outstanding positions peaked at about $860 million in late June and have remained mostly above $600 million as the shares fell toward their listing price.

Crypto markets are watching this development closely as investors weigh its potential impact on prices.