© Maryshot / Shutterstock.com Ripple’s XRP token is taking a hit on Friday, June 5. The cryptocurrency is down 6% to $1.103, extending a multi-day slide that has dragged the broader digital asset complex into the red. Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) are also down, but the XRP move stands out given the token’s famously devoted retail following. The selling pressure is showing up across the board. Bitcoin is down 5% over a 24-hour period to $60,786 while Ethereum is down 10% to $1,591. What’s notable here is the absence of a Ripple-specific catalyst. There’s no earnings report, no SEC filing, no single-company headline driving the tape. The move is being driven by macro positioning and a rotation away from speculative risk assets as Wall Street prepares for one of the largest equity events of the decade. SpaceX IPO Rotation Sparks the Selloff The narrative tying it together comes from a Barron’s piece by Callum Keown framing crypto as a potential “first casualty” of the SpaceX IPO. The thesis is straightforward. With the SpaceX deal expected June 13 at $135 per share, set to make Tesla (NASDAQ:TSLA | TSLA Price Prediction) CEO Elon Musk the world’s first trillionaire, risk capital is being pulled from speculative corners of the market to free up dry powder for the marquee listing. Cryptocurrency sits at the top of that funding list. Digital assets share investor overlap with high-beta tech and pre-IPO speculation, so when a generational listing approaches, the asset class often gets sold first. XRP, with its retail-heavy ownership base and elevated beta versus Bitcoin, is feeling that rotation acutely. It doesn’t help that Bitcoin’s intraday action confirms the broader risk-off tone. The flagship token traded around $60,337 as of 14:00 UTC, after slipping from a recent high near $72,657 on June 1. When Bitcoin breaks, altcoins like XRP usually break harder. Tech Selloff Spreads to Digital Assets The XRP weakness is part of a wider unwind in speculative tech. The VIX is sitting at 15.4, still well within normal territory, which suggests this isn’t a panic event. The rotation is orderly, methodical, and concentrated in the highest-octane risk pockets. Ripple itself hasn’t been quiet on the fundamental side. Coinbase (NASDAQ:COIN) recently launched SpaceX pre-IPO perpetual futures, giving eligible non-U.S. traders blockchain-based private-market price exposure, an ironic twist given the rotation thesis. CEO Brad Garlinghouse also predicted at the Coindesk Consensus Conference that the stablecoin market cap would hit $3 trillion by 2031, pointing to real payment use cases. Yet, none of that is enough to offset the pre-IPO capital reshuffling. Long-term holders may view the dip as a chance to accumulate, but short-term tape readers are watching liquidity drain out of the space. The XRP Ledger ecosystem remains intact and Ripple’s institutional positioning continues to expand, though fundamentals evidently don’t matter as much during a sentiment-driven rotation. What to Watch Next The key date on the calendar is June 13, when the SpaceX IPO is expected to price. Cryptocurrency traders can keep an eye on whether selling pressure accelerates into that listing or eases as positioning completes. A clean launch could actually release the pressure valve. For their part, XRP holders should keep an eye on the $1.10 level. A clean break below would invite further technical selling, while a hold could attract dip buyers from the token’s loyal retail base. Bitcoin’s ability to defend the $60,000 zone is a major factor for the whole complex. The bottom line is that this is fundamentally a macro rotation story driven by the SpaceX IPO. Investors weighing their exposure may consider trimming their positions into strength rather than chasing the dip, given the macro backdrop and the looming IPO drain on risk capital. The next week of trading should clarify whether crypto can decouple, or whether the “first casualty” thesis holds through the SpaceX debut. Follow 24/7 Wall St. on Google