Circle Internet Group Inc. (NYSE: CRCL) extended its dramatic downtrend for a third consecutive session, closing at $198.62, down 10.79% from yesterday’s close. This sharp decline follows two straight days of losses and now amounts to a weekly drop of 17.3%, wiping out nearly $24 billion in market capitalization from Monday’s intraday peak of $298.99, when CRCL’s valuation briefly touched $67 billion.
Today, the market closed with a strong bearish marubozu candle, signaling relentless selling pressure throughout the session. CRCL opened at $218.54, reached an intraday high of $227.54, but sold off aggressively to a session low of $198.00.
Also Read – 4 Reasons Circle (CRCL) Stock is Crashing – Will It Hit $200 Next?
What Triggered This Latest Selloff?
Wednesday’s drop was fueled by a fresh macro headwind: a critical report by the Bank for International Settlements (BIS) – the global financial institution owned by 63 central banks, including the U.S. Federal Reserve, ECB, and Bank of Japan. Often called the “central bank of central banks,” the BIS holds significant sway over global monetary policy perspectives.
In its newly published analysis, the BIS acknowledged the value of tokenization – the process of converting real-world assets or fiat currencies into digital tokens for use on blockchain networks – but dismissed stablecoins like USDC as insufficient for systemic financial infrastructure.
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According to the report,
“stablecoins offer some promise on tokenization, but fall short of requirements to be the mainstay of the monetary system when set against the three key tests of singleness, elasticity, and integrity.”
This statement undermines the foundational business case for Circle’s USDC, which boasts a $61.9 billion market cap and processed $2.61 trillion in annual transaction volume, positioning itself as the go-to stablecoin for regulated financial rails.
Also Read – CRCL’s USDC & FI’s FIUSD – The Stablecoin Business Model Everyone Should Understand
Valuation and Institutional Rotation Add to Pressure
Wednesday’s fall adds to existing concerns that began mounting earlier in the week. On Monday, CRCL reached an intraday high of $298.99, reflecting a 750% gain from its $31 IPO price. However, that surge was quickly followed by heavy institutional selling.
Leading the exit was Cathie Wood’s ARK Invest, which sold 415,844 CRCL shares worth $109.6 million on June 23 and booked a total of $352 million in profits. While ARK still holds 3.2 million shares, accounting for 7.8% of its ARKW fund, the strategic shift in favor of Coinbase (COIN) – a firm with stronger diversification, scaling infrastructure via its Base Layer 2 network – shows a clear reallocation of fintech exposure.
Technical Breakdown: All Eyes on $188–$190
On the technical front, CRCL has now filled the price gap between $200–$206, a zone previously highlighted by us as an inevitable magnet for price correction. The stock is now hovering at a critical confluence zone around $198–$200, where technical and geometric support levels meet.
The 9-day EMA on the daily chart sits near $188–$190, a zone that could act as the next key support if selling continues. Any bounce toward $200–$205 would need strong volume confirmation to reverse the bearish trend.
The Relative Strength Index (RSI) on the daily timeframe is currently at 40.43, just above the oversold threshold of 30. This suggests that while the stock has weakened considerably, it hasn’t yet hit panic-selling levels typically associated with technical reversals.
Summary
With the macro narrative turning cautious, regulatory uncertainty resurfacing, and key support zones being tested, CRCL’s near-term trajectory remains volatile. While Circle’s fundamentals – including its USDC dominance, partnerships with Fiserv, and regulatory leadership – remain strong, the market is clearly entering a valuation reset phase.
Also Read – USDC vs. RLUSD vs. USDT – Key Differences and Why They Matter
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Dawson Blake is a financial markets expert with over 10 years of experience, focusing mainly on stock market news and price movements. He aims to become a top-tier authority in curating stock news content that readers can trust as their go-to source for market information. Dawson enjoys breaking down market activity, company updates, and daily trends to help investors stay informed and make smarter financial decisions. His writing is simple, clear, and designed to make the stock market easy to follow for everyone.