Elon Musk’s SpaceX initial public offering has reportedly seen oversubscription rates nearly quadruple the planned offering size, with some analysts suggesting this could reduce market liquidity.

SpaceX’s (SPCX) IPO attracted more than $250 billion in investor demand, far exceeding the $75 billion the company is seeking to raise in its largest-ever IPO that values ​​the company at $1.8 trillion, Reuters reported.

Bankers and investors say this is the latest sign of mighty demand as sources say long-only funds have placed “large orders.”

Pricing is expected on Thursday, although demand figures could change before then as some gigantic institutional investors tend to place orders overdue in the process.

Technology stocks are falling as IPO hype turns

The IPO comes at a time of extreme market volatility, with U.S. technology stocks falling and cryptocurrency markets losing more than $180 billion over the past week.

Some analysts speculate that the market collapse may be partly due to sales to raise funds for SpaceX’s initial public offering.

“I see it exactly as a classic pre-mega-IPO liquidity crunch playing out in real time,” Bitrue Research Institute head of research Andri Fauzan Adziima told Cointelegraph.

“The current surge in crypto and technology stocks is not accidental, it is a direct ‘IPO tax’ resulting from the record-breaking SpaceX deal, which will be priced at $135 tomorrow and Friday, giving it a valuation of $1.8 trillion,” he said.

“Oversubscription on massive orders confirms the hype, but this excitement is sucking liquidity out of correlated risk assets today, hitting cryptocurrencies the hardest because they are most retail-oriented and tied to the growth/tech narrative.”

This isn’t the beginning of a broader bear market, it’s a “temporary rotation,” he said.

Technology stocks lose (five days) ahead of SpaceX IPO. Source: Barchart chart

Cryptocurrency exchanges are rushing to offer drummers ahead of the IPO

SpaceX’s growth story is largely tied to its Starlink satellite Internet business, which has become a major source of revenue and profitability. The company also touted the $23 trillion market opportunity it said lies ahead for its AI offerings.

Related: SpaceX IPO: ‘Bad news’ for tech stocks, but what about Bitcoin?

Cryptocurrency exchanges were quick to capitalize on the IPO buzz, and Binance Coinbase, Kraken AND Bybit launch of SPCX pre-IPO perpetual futures this month.

Shunyet Jan, director of spot and derivatives at Binance, told Cointelegraph that the mighty early popularity of Binance perpetual futures ahead of the IPO “reflects growing user interest in gaining regulated market exposure to high-profile private companies through this native product.”

Since launch, these products have generated a total trading volume of $2.1 billion in just 18 days on Binance, with participation in over 130 countries.

Meanwhile, decentralized exchange Hyperliquid has seen trading volume of $70 million over the past 24 hours, with the current pre-IPO price of its SpaceX synthetic perps at $157, up from $210 when the derivatives were introduced. According to to Hyperdash.

This indicates mighty demand, with open interest (OI) exceeding $115 million on Hyperliquid alone, and the current forecast values ​​SpaceX at $1.97 trillion.

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