SpaceX loses $600B in 3 days, erasing half of bitcoin's market cap
In brief
- SpaceX lost $600 billion in three trading days, nearly half bitcoin's market cap
- Decline followed SpaceX's first $20 billion bond sale announcement for AI buildout
- Bitcoin fell under 1% same period, showing relative stability versus the megastock
- SpaceX's thin float amplifies volatility; bitcoin's market is deeper and more liquid
- Nasdaq fell 1.3% as investors questioned big tech's AI spending returns
The Three-Day Collapse
[SpaceX's stock dropped 16% on Monday to $154.60, its lowest price since its June 12 debut], taking its three-day decline to about 23%. A week earlier, the company was worth nearly $2.5 trillion and had briefly passed Amazon and Microsoft. By the time the selling stopped, SpaceX's market value sat just above $2 trillion.
The trigger: SpaceX announced plans to sell at least $20 billion of bonds—its first time borrowing in the debt markets. The company chose to borrow rather than issue new shares, which would have diluted existing holders. The decision came after SpaceX acquired Elon Musk's xAI in February, adding significant leverage to its balance sheet.
Even derivatives markets reflected the stress. [A perpetual futures contract tracking SpaceX on Hyperliquid fell another 15% to around $151 on Tuesday], extending losses beyond traditional equities.
Why SpaceX Fell Harder Than Bitcoin
The contrast is stark. Bitcoin held near $63,600 over the three-day period, absorbing the same macro headwinds with barely a flinch.
The reason comes down to market structure. [SpaceX trades on a thin float, meaning only a small share of its stock is available to trade, so each move is amplified]. Bitcoin's market is far deeper and more liquid. Every seller doesn't crater the price; every buyer doesn't spark a rally. The 16% single-session drop reflects that thinness.
Meanwhile, the Nasdaq fell 1.3% as investors questioned whether the enormous sums big technology firms are spending on AI will pay off. Alphabet and Amazon both declined on Monday. SpaceX, newly public and speculative, absorbed the broader tech rotation with outsized losses.
Crypto's Resilience
Bitcoin's stability wasn't accidental. AI-driven risk appetite aided crypto's recovery this month, and geopolitical shifts helped. The U.S.-Iran peace process advanced, with Washington issuing a 60-day license allowing Iran to sell oil again. Brent crude settled below $78 a barrel, easing inflationary pressure that has kept the Federal Reserve hawkish.
May's exchange data told a mixed story. Combined exchange volumes fell 3.45% to $4.41 trillion, the lowest since September 2024. But real-world-asset perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high—a sign that institutional capital is rotating, not fleeing.
For all the talk this year of bitcoin as the speculative bet, it was the newly public megastock that swung 23% in three days while bitcoin held its ground.
Frequently asked questions
Why did SpaceX's stock fall 23% in three days?
SpaceX announced its first bond sale—a $20 billion borrowing to fund AI buildout—triggering the decline. The company chose to borrow rather than issue new shares, which would have diluted existing holders. SpaceX's thin float (small share available to trade) amplifies each move, making the selloff more severe than a deeper market would experience.
Why did bitcoin barely move while SpaceX crashed?
Bitcoin's market is far deeper and more liquid than SpaceX's stock. With more buyers and sellers, individual transactions have less impact on price. Bitcoin held near $63,600 over the three-day period while absorbing the same macro backdrop—a stark contrast to SpaceX's 23% swing.
What macro factors supported bitcoin's stability?
AI-driven risk appetite aided crypto's recovery in May. Geopolitically, the U.S.-Iran peace process advanced with a 60-day license allowing Iran to sell oil again. Cheaper oil eased inflationary pressure that has kept the Federal Reserve hawkish, reducing near-term rate-hike risk.
