Evening digest: Crypto slide, SpaceX IPO buzz, India selloff

Global markets closed the week on a cautious note, with multiple asset classes reflecting heightened uncertainty.

The cryptocurrency market weakened amid a broader risk-off mood, while geopolitical tensions and rising oil prices shaped equity sentiment. 

At the same time, Elon Musk’s potential plans for a retail-heavy SpaceX IPO drew attention, even as foreign investors accelerated their exit from Indian equities.

Meanwhile, SoftBank signaled a renewed push into artificial intelligence with a massive financing deal.

Crypto markets slide as risk-off sentiment deepens

The cryptocurrency market fell to its lowest levels in more than two weeks, weighed down by a broader risk-off sentiment.

Bitcoin fell below $66,000, while Ethereum fell below $2,000. 

The downturn coincided with a pullback in US equity futures, as rising oil prices and fears surrounding the Iran conflict dampened investor appetite for risk.

Oil prices holding above $100 per barrel added to inflation concerns, further pressuring sentiment.

Altcoins saw sharper losses, with several tokens falling between 3% and 6%.

Derivatives data showed that bullish positions bore the brunt of liquidations, with nearly $300 million wiped out in long bets over 24 hours, compared with just $50 million in short positions.

At the same time, open interest trends pointed to growing bearish positioning.

XRP futures, for instance, saw rising open interest alongside falling prices, signaling increased short activity.

Across major tokens, negative funding rates and demand for downside protection reinforced a cautious outlook.

SpaceX IPO plan signals shift toward retail investors

In a potential break from traditional IPO structures, SpaceX is considering allocating up to 30% of its shares to retail investors, according to a Reuters report.

The move would significantly exceed the typical 5% to 10% allocation seen in most high-profile listings, signaling a shift in how ownership and price discovery could be shaped.

The strategy appears to draw on Musk’s experience with Tesla, which has a strong base of individual investors.

By increasing retail participation, SpaceX could create a more loyal shareholder base and reduce reliance on institutional investors in early trading.

The company is reportedly targeting a valuation of around $1.75 trillion, potentially making it one of the largest IPOs in history.

If executed, the structure could redefine how marquee tech offerings are distributed in public markets.

Foreign outflows rattle Indian markets amid oil shock

Indian equities are facing significant pressure as foreign portfolio investors pull out funds at a record pace.

Outflows have reached approximately $12 billion in March, surpassing previous highs and reflecting a sharp reversal in sentiment.

The selloff has been driven by rising oil prices and escalating geopolitical tensions, particularly linked to the Iran conflict.

Benchmark indices such as the Nifty 50 and BSE Sensex have both declined around 9.5% since the conflict began.

The Indian rupee has also weakened sharply, hitting record lows against the US dollar.

Analysts warn that currency depreciation could amplify outflows by eroding returns for foreign investors.

Rising crude oil prices remain a key concern for India, a major importer of energy.

Analysts caution that sustained high oil prices could widen the current account deficit, push inflation higher, and weigh on economic growth.

SoftBank doubles down on AI with $40 billion loan

SoftBank has secured a $40 billion bridge loan as it intensifies its focus on artificial intelligence and deepens its relationship with OpenAI.

The financing, arranged with major global banks, will mature in March 2027 and provide the company with flexibility to deploy capital across its AI initiatives.

SoftBank has already committed $30 billion to OpenAI and is positioning itself at the center of the global AI race.

The company is also involved in large-scale infrastructure efforts such as the Stargate Project, which aims to invest up to $500 billion in AI infrastructure in the United States.

The latest funding move reflects a strategic pivot toward AI after a volatile period for SoftBank’s Vision Fund portfolio.

It also underscores growing competition among global technology firms to secure leadership in generative AI.