Krugman Warns Overvalued SpaceX Could End Like Bitcoin Bubble
Founded by Elon Musk, SpaceX operates rocket launches, crewed space missions and the Starlink satellite network. As its market valuation has climbed to $2.75 trillion, debate has intensified over whether its pricing and growth prospects have become detached from fundamentals. The surge has also drawn attention to the liquidity and risks of privately held shares.
As of July 20, 2026, Nobel economics laureate Paul Krugman described SpaceX in a post as a “meme stock” sustained by Musk’s appeal, drawing parallels with Bitcoin’s “Trump trade” and previous flash crashes. He warned that early shareholders could cash out at the elevated valuation, leaving later investors exposed to the risk of a bubble reversal.
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The history behind this eventSpaceX Valuation Hits $2.6 Trillion, Nearly Double Bitcoin’s Market Cap
SpaceX was originally centered on rocket launches and its Starlink satellite network, but added its AI ambitions to its growth narrative after going public. Its market capitalization quickly surpassed $2.5 trillion, compared with bitcoin’s overall market value of about $1.3 trillion, reflecting competition between technology stocks and crypto assets for risk-seeking capital.
According to the latest reports as of July 20, 2026, a sharp rise in SpaceX shares lifted its market capitalization to $2.6 trillion, about $100 billion above the $2.5 trillion milestone and nearly twice bitcoin’s total market value. Analysts said the rally was driven by enthusiasm over the company’s AI business and was crowding out incremental capital that might otherwise flow into the cryptocurrency market.
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