Circle, the issuer of the USDC stablecoin, kicked off a transformative trend by applying for a national banking charter from the U.S. Office of the Comptroller of the Currency (OCC) on June 30, 2025.
Now, Ripple, the privately held company behind the RLUSD stablecoin, has followed suit with its own OCC application on July 2, 2025. These moves signal a seismic shift in the crypto industry’s push to integrate with traditional finance, leveraging a crypto-friendly regulatory climate under the Trump administration to gain federal oversight.
Circle’s bid aims to establish First National Digital Currency Bank, N.A., allowing direct custody of its $61.5 billion USDC reserves, reducing dependence on third-party banks like BNY Mellon. Ripple’s application, paired with oversight from the New York Department of Financial Services, seeks to enhance trust in RLUSD and expand its XRP Ledger’s institutional use. Both companies are capitalizing on the OCC’s recent crypto custody rule, which permits banks to manage digital assets without prior approval, paving the way for broader services like institutional crypto custody.
The timing aligns with growing legislative momentum, including the proposed GENIUS Act for stablecoin regulation, which could further legitimize crypto in mainstream finance. Yet, challenges like regulatory scrutiny and market volatility loom. As Circle and Ripple, the latter still a private entity, pursue banking charters, their efforts could redefine the convergence of decentralized finance and regulated banking, setting a new standard for the crypto industry’s evolution.
This article is for informational purposes only and should not be considered financial advice. Investing in stocks, cryptocurrencies, or other assets involves risks, including the potential loss of principal. Always conduct your own research or consult a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred from actions based on this article. While efforts have been made to ensure accuracy, economic data and market conditions can change rapidly. The author and publisher do not guarantee the completeness or accuracy of the information and are not liable for any errors or omissions. Always verify data with primary sources before making decisions.
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.
New York || 4:54 p.m. ET – Circle Internet Group, Inc. (NYSE: CRCL), the issuer behind the world’s second-largest stablecoin USDC, announced the upcoming launch of Circle Gateway, a major crosschain breakthrough for stablecoin transfers. CRCL stock closed Tuesday at $192.53, gaining $11.50 or 6.3% on the session, supported by renewed investor optimism around Circle’s innovation roadmap and the recent passage of the GENIUS Act.
Solving the Multichain Challenge
The blockchain ecosystem has long been fragmented across networks like Ethereum, Solana, and Avalanche. Users holding USDC on one chain often face delays and added costs to move funds to another, relying on bridges or third-party liquidity providers. These hurdles slow stablecoin adoption and complicate operations for exchanges, payment processors, and institutions.
Circle Gateway, announced on July 1, 2025, aims to eliminate this fragmentation by introducing a unified USDC balance through a non-custodial smart contract. This structure will allow users to instantly access their USDC across multiple blockchains, removing the need for manual bridging or rebalancing liquidity.
Circle Gateway’s approach is designed for simplicity and efficiency:
Users deposit USDC into a non-custodial smart contract
A single balance is created, instantly accessible on supported chains
Transfers can happen in real time, without bridges or third-party intermediaries
The company plans to roll out the new service on testnets for Avalanche, Base, and Ethereum later this month, with additional blockchain integrations expected in the future.
CRCL Stock Momentum Remains Strong
CRCL shares have surged since Circle’s June 5, 2025 IPO, which was priced at $31 and closed its first trading day at $83.23, up 168%. On Tuesday, July 1, 2025, the stock closed at $192.53 after hitting an intraday high of $194.32 and a low of $171.50, with trading volume exceeding 30.9 million shares. The market capitalization stands around $69 billion, reflecting sustained confidence in Circle’s stablecoin leadership, partnerships, and regulatory focus.
Broader Vision for Stablecoins
Founded in 2013, Circle is committed to making digital dollars as easy and reliable as email. USDC, with a circulating supply around $61.4 billion, is the second-largest stablecoin globally. Circle also offers EURC, a euro-backed stablecoin, and USYC, a tokenized money market fund (not available in the United States).
The company operates the Circle Payments Network, supports crosschain protocols, and holds key regulatory licenses, including approval from the New York Department of Financial Services and the Bermuda Monetary Authority. These compliance measures, paired with monthly attestations from a Big Four auditor, reinforce user trust and institutional confidence.
Conclusion
Circle Gateway marks an important step forward for chain-agnostic stablecoin transfers, providing seamless, instant USDC access across multiple blockchains. As Circle begins its testnet rollout this month, developers, businesses, and investors will be watching closely to see how this technology may transform the future of digital finance.
This article is for informational purposes only and should not be considered financial advice. Investing in stocks, cryptocurrencies, or other assets involves risks, including the potential loss of principal. Always conduct your own research or consult a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred from actions based on this article. While efforts have been made to ensure accuracy, economic data and market conditions can change rapidly. The author and publisher do not guarantee the completeness or accuracy of the information and are not liable for any errors or omissions. Always verify data with primary sources before making decisions.
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.
Since touching an all-time high of $298.99 on Monday after announcing a major partnership with Fiserv, the stock has seen relentless selling pressure. CRCL attempted a modest rebound of 7.56% on Thursday but could not sustain the momentum, breaking down again Friday to finish near session lows.
Friday’s trading opened at $223.65 and reached an early high at the same level before collapsing to an intraday low of $175.60. After-hours prices recovered slightly to $182.88, up 1.36%, but market confidence remains weak. The company’s market capitalization has shrunk to $40.15 billion from its Monday peak of roughly $67 billion, wiping out nearly $27 billion in value in just five trading days.
According to Yahoo Finance, Circle’s valuation metrics remain stretched despite the correction. Its trailing P/E ratio stands at 2,070, with a forward P/E of 128.21, and a lofty price-to-book ratio of 53.90. These numbers underline investor concerns about overheating.
Since its IPO price of $31, CRCL has still delivered a staggering return of approximately 481% even at $180.43, reflecting the scale of the prior rally.
Technical Outlook for Monday
CRCL’s price chart is showing concerning weakness. The stock decisively broke through its first parallel channel support in the 190–200 zone, which had served as a critical technical level earlier in the week.
With Friday’s deep close, CRCL is now trading inside a second parallel channel, bounded by 170–160 as crucial support. If this lower channel fails to hold, the next significant levels could be much deeper.
Short-term resistance is likely to emerge near 190, coinciding with the broken prior support, while the upper band of the current channel around 205–210 will serve as a major resistance level on any meaningful bounce.
How Much Will It Fall?
Given the severe weekly drop of nearly 25% and a 39.65% collapse from Monday’s all-time high, sentiment is highly fragile. If CRCL cannot hold above the 170–160 channel support early next week, the decline could accelerate toward 150 or lower in a washout phase.
At the same time, the Relative Strength Index is hovering around 35 on the hourly timeframe, approaching oversold territory. That could temporarily slow the decline.
For now, the chart suggests a bearish bias with the potential to retest the 170–160 zone.
Valuation Still in Question
Circle’s valuation metrics are extremely rich compared to traditional fintech peers. A trailing P/E above 2,000, forward P/E over 128, and price-to-book ratio of nearly 54 put its fundamentals under intense scrutiny. Combined with a collapse in technical structure and critical comments from the Bank for International Settlements (BIS) questioning the long-term viability of stablecoins, CRCL’s profile has shifted from high-flying to highly vulnerable in a matter of days.
As of now, Circle’s massive run from its $31 IPO to $298.99 on Monday, a 864% gain at the top, is experiencing a harsh reality check. Even after falling to $180.43, the stock retains an approximate 481% return from IPO, underscoring just how inflated the price had become.
This article is for informational purposes only and should not be considered financial advice. Investing in stocks, cryptocurrencies, or other assets involves risks, including the potential loss of principal. Always conduct your own research or consult a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred from actions based on this article. While efforts have been made to ensure accuracy, economic data and market conditions can change rapidly. The author and publisher do not guarantee the completeness or accuracy of the information and are not liable for any errors or omissions. Always verify data with primary sources before making decisions.
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.
Circle Internet Group Inc. (NYSE: CRCL) surged over 14% in early trading on Thursday, rising $28.33 to hit $226.95. This sharp rebound comes after the stock closed at $198.62 the previous day – marking a three-day plunge totaling 33.78% from Monday’s peak of $298.99. Today’s price action has pushed Circle’s market cap back up to approximately $49.03 billion, compared to Tuesday’s low of $43.8 billion.
The rally appears to be a technical pullback, following a steep sell-off that wiped out nearly $24 billion in market capitalization within 72 hours. While traders and investors are watching closely, many are wondering: Is this the bottom – or just a pause before more downside?
A Closer Look: Is CRCL Stock Out of Danger?
For investors hopeful that Circle’s worst days are over, the answer isn’t so simple. According to recent candlestick chart patterns, CRCL is not in confirmed bullish territory yet. Technically, the stock is still in correction mode and is only rebounding from a critical support zone between $198–$206.
To regain a bullish outlook, Circle needs to sustain above $250 – a key resistance level – for several sessions. Until then, price action may stay confined to a parallel channel that appears to be forming between $206 and $255. This range-bound movement is consistent with what has previously been observed in CRCL’s chart structure.
The stock briefly broke above a minor trendline, indicating short-term momentum. However, there is a high probability that price could retest the 9-day EMA, which currently sits at $194.85 on the daily timeframe. At the time of writing, the stock is showing some rejection near the previous session’s high, suggesting buyers are cautious around resistance zones.
Meanwhile, the RSI (Relative Strength Index) is hovering around 50, indicating neither overbought nor oversold conditions. For a stronger reversal confirmation, RSI would ideally need to bounce from near-oversold levels with increasing momentum.
This intraday spike may provide short-term relief, but given the volatility and broader market reaction to stablecoin regulation updates – including the BIS report that criticized the viability of stablecoins — investors should remain alert. Technical setups hint at continued volatility unless CRCL reclaims and holds higher levels with strong volume.
This article is for informational purposes only and should not be considered financial advice. Investing in stocks, cryptocurrencies, or other assets involves risks, including the potential loss of principal. Always conduct your own research or consult a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred from actions based on this article. While efforts have been made to ensure accuracy, economic data and market conditions can change rapidly. Always verify data with primary sources before making decisions.
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.
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.
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.
“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.
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.
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.
This article is for informational purposes only and should not be considered financial advice. Investing in stocks, cryptocurrencies, or other assets involves risks, including the potential loss of principal. Always conduct your own research or consult a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred from actions based on this article. While efforts have been made to ensure accuracy, economic data and market conditions can change rapidly. The author and publisher do not guarantee the completeness or accuracy of the information and are not liable for any errors or omissions. Always verify data with primary sources before making decisions.
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.
The slide filled a technical gap between $200-$206, formed during last week’s 750% rally from a $31 IPO to a $298.99 peak. CRCL’s market cap now stands at $44.79B, down $5B from Monday’s $49.1B. Trading volume hit 24.49M shares, signaling intense selling pressure.
From a technical standpoint, CRCL’s RSI is at 35, inching closer to the oversold threshold of 30. The gap between $200–$206, visible in last week’s rapid rally, has now been completely filled – a move often seen as a potential bounce zone for short-term traders. However, whether this leads to a reversal or a further slide toward the $190–$200 range remains uncertain.
With institutional profit-taking, valuation concerns, and broader risk sentiment affecting fintech stocks, Circle’s near-term trajectory may depend on buyers’ willingness to defend the $200 support level.
As of now, the technical structure suggests a likely retest of $190–$200 if the stock fails to hold above today’s lows. Analysts and traders will be closely watching the close for confirmation of strength or further downside.
This article is for informational purposes only and should not be considered financial advice. Investing in stocks, cryptocurrencies, or other assets involves risks, including the potential loss of principal. Always conduct your own research or consult a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred from actions based on this article. While efforts have been made to ensure accuracy, economic data and market conditions can change rapidly. The author and publisher do not guarantee the completeness or accuracy of the information and are not liable for any errors or omissions. Always verify data with primary sources before making decisions.
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.
Cathie Wood’s ARK Invest has stirred the market again – this time by trimming its position in Circle Internet Group (NYSE: CRCL) while boosting its stake in Coinbase (NASDAQ: COIN). On June 23, 2025, ARK sold 415,844 CRCL shares worth $109.6 million, part of a larger divestment totaling $352 million, according to reports from Cointelegraph.
What’s behind the rebalancing?
It’s a strategic pivot rooted in profit-taking after Circle’s explosive 750% rally from its $31 IPO price to an all-time high of $298.99, which briefly pushed its market cap to $67 billion. CRCL dropped 15.49% to $222.65 on tuesday, cutting its market cap to approximately $49.1 billion, with after-hours trading slipping further to $218.14.
At the time of writing, it is trading 3.90% higher at $232 in the pre-market session.
Importantly, ARK hasn’t fully exited. It still holds 3.2 million CRCL shares, accounting for 7.8% of ARKW, signaling continued confidence in USDC (Circle’s flagship stablecoin). USDC currently boasts a $61.9 billion market cap and $2.61 trillion in annual transaction volume, according to CoinMarketCap.
However, CRCL’s P/E ratio of 238 and EV/EBITDA of 197.04 point to a stretched valuation. In contrast, Coinbase offers diversified exposure to the crypto ecosystem. ARK acquired 4,198 COIN shares worth $1.48 million, capitalizing on its $955.8 million Q1 2025 revenue, expanding Base Layer 2 network, and the broader 15% rally in Bitcoin.
While the GENIUS Act supports the stablecoin sector by clarifying U.S. regulations, ARK’s rotation into COIN appears to hedge against potential volatility and overvaluation in CRCL – balancing its fintech bet between infrastructure (COIN) and tokenization (CRCL).
This article is for informational purposes only and should not be considered financial advice. Investing in stocks, cryptocurrencies, or other assets involves risks, including the potential loss of principal. Always conduct your own research or consult a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred from actions based on this article. While efforts have been made to ensure accuracy, economic data and market conditions can change rapidly. The author and publisher do not guarantee the completeness or accuracy of the information and are not liable for any errors or omissions. Always verify data with primary sources before making decisions.
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.
New York, 05:42 AM ET:Circle Internet Group Inc. (NYSE: CRCL) surged 4.42% to $232.48 in pre-market trading at 8:00 AM EDT, rebounding from Wednesday’s 15.49% plunge to $222.65 . The drop, extending a correction from a $298.99 peak on June 23, wiped $18B off CRCL’s market cap, now $49B. Investors are eyeing Circle’s USD Coin (USDC), with $2.61T in 2024 transactions, as a stabilizing force.
The recovery follows a brutal two-day slide, sparked by Cathie Wood’s ARK Invest selling 1.7M CRCL shares for $352M. Despite CRCL’s 750% rally since its $31 IPO on June 5, 2025, its P/E of 238 signals overvaluation.
RSI at 40.77 suggests potential to fill a $206 gap or test $200, but pre-market strength hints at a $200-$250 range.
This article is for informational purposes only and should not be considered financial advice. Investing in stocks, cryptocurrencies, or other assets involves risks, including the potential loss of principal. Always conduct your own research or consult a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred from actions based on this article. While efforts have been made to ensure accuracy, economic data and market conditions can change rapidly. The author and publisher do not guarantee the completeness or accuracy of the information and are not liable for any errors or omissions. Always verify data with primary sources before making decisions.
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.
Circle Internet Financial Ltd. (NYSE: CRCL), the fintech powerhouse behind the USDC stablecoin, has hit a rough patch. On Tuesday, June 25, its stock plummeted 15.49%, closing at $222.65 – down from Monday’s close of $263.50. This sharp decline erased nearly $5 billion from its market capitalization, leaving it at $49.1 billion.
The stock opened at $250.42 – a key support level – before sinking to an intraday low of $217.58. After hours, it dipped further to $218.14, shedding another 2.03% ($4.51). Despite this tumble, CRCL remains up an impressive 42.40% over the past five days, though the recent drop has investors questioning whether the worst is yet to come.
The financial world buzzed with news of Cathie Wood’s ARK Invest, a prominent ETF provider, unloading a significant chunk of CRCL stock. Instead, Wood redirected capital into Robinhood (HOOD) and Coinbase (COIN) shares – a move that’s amplified the bearish sentiment around CRCL. ARK’s decisions often sway market trends, and this sell-off has contributed to the stock’s downward spiral.
The timing is notable: Monday saw CRCL surge 25% to an intraday peak of $298.99 on news of a partnership with Fiserv, only to crash 11.9% from that high. Tuesday’s 17.89% drop from an intraday peak of $265 to the low of $217.58 underscores the volatility gripping the stock.
Technical Breakdown: Bearish Signals Dominate
The charts tell a grim story. Tuesday’s close featured a bearish marubozu candlestick – a sign of unrelenting selling pressure. The stock, now at $222.50, has breached its critical $245-250 support zone and retraced to $230, aligning with the 9EMA on the hourly timeframe.
On the daily chart, the 9EMA support sits at $186.55, near a broader support range of $185-205, based on simple price action analysis. Meanwhile, the $243-250 zone has flipped into a major resistance, with $233-238 acting as a minor hurdle below it.
The Relative Strength Index (RSI) stands at 40.77 – not yet in oversold territory (below 30) – suggesting room for further downside. Analysts see CRCL potentially filling a gap below $206 and testing the $200 level.
For now, the stock appears poised to trade range-bound between $200 and $250, reflecting a cooling-off period after its meteoric 750% rise from an IPO price of $31. That overstretched rally, paired with a high P/E ratio compared to industry peers, had long hinted at an overdue correction.
Key Technical Levels:
Support: $185-205 (daily 9EMA at $186.55), $200 zone
Resistance: $233-238 (minor), $243-250 (major)
RSI: 40.77 (neutral, not oversold)
CRCL Financials: A Silver Lining Amid the Crash?
Despite the stock’s recent decline, Circle’s fundamentals remain strong. For the fiscal year, the company reported a net income of $155.67 million and revenue of $1.68 billion, with 110.07 million shares outstanding (Source: TradingView).
As a leader in the stablecoin space, Circle’s business model is closely tied to the growing adoption of digital assets – a trend that could support its long-term outlook. However, the recent market cap contraction and technical headwinds continue to overshadow these strengths in the short term.
CRCL’s $5 billion market cap wipeout is a stark reminder of the volatility that follows high-flying stocks. Cathie Wood’s pivot to Robinhood and Coinbase has fueled the sell-off, while technical indicators point to a possible drop to $200. Profit-taking after a 750% post-IPO run was inevitable, but the depth of this correction – coupled with a lofty P/E ratio – raises questions about near-term stability. Still, Circle’s strong financials and its foothold in the stablecoin market suggest resilience over the long haul.
Will it get worse? The $200 level looms as a critical test. If it holds, CRCL could stabilize within the $200-250 range. A break below, however, might signal deeper trouble. Investors should keep a close eye on volume, RSI, and any fresh catalysts to gauge the stock’s next chapter. For now, caution is the name of the game.
This article is for informational purposes only and should not be considered financial advice. Investing in stocks, cryptocurrencies, or other assets involves risks, including the potential loss of principal. Always conduct your own research or consult a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred from actions based on this article. While efforts have been made to ensure accuracy, economic data and market conditions can change rapidly. The author and publisher do not guarantee the completeness or accuracy of the information and are not liable for any errors or omissions. Always verify data with primary sources before making decisions.
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.
Circle Internet Group Inc. (NYSE: CRCL), the issuer of the world’s second-largest stablecoin, USDC, is facing a turbulent week. Already down 17.3% from the previous week’s close and wiping out nearly $24 billion in market capitalization from Monday’s intraday peak of $298.99, CRCL touched the $200 mark on Wednesday.
As of June 25’s close at $198.62, the sharp decline has wiped out nearly $24 billion in market capitalization, bringing CRCL’s valuation down from its June 23 peak of approximately $67 billion to $43.8 billion. The steep three-day drop has intensified investor concerns, especially after breaching the psychologically and technically significant $200 level. With Circle now trading below key moving averages and macro pressure mounting after the BIS report, many are questioning whether the correction could deepen further toward the $188–$190 zone, which marks the next critical support.
Here are seven key reasons behind Circle’s stock drop and what they mean for investors.
1. Downgrades from Major Banks Like JPMorgan
Circle Internet Group has faced significant headwinds due to downgrades from prominent financial institutions like JPMorgan. On the first day of Wall Street coverage, JPMorgan initiated its coverage of Circle with an Underweight rating, equivalent to a sell recommendation, citing an unjustifiably high valuation. Their $80 price target, which already factors in a premium for investor enthusiasm, signals a lack of confidence in the stock’s current price, contributing to its downward pressure as institutional investors reassess their positions.
2. Jim Cramer’s Bearish Commentary Undermines Investor Confidence
Jim Cramer, a widely followed market commentator, has publicly criticized Circle Internet Group, calling its current stock price “crazy” and unjustifiable by any measure. His vocal disapproval, combined with his influence among retail and institutional investors, has likely demoralized the market and eroded confidence in Circle’s valuation. Such high-profile bearish sentiment amplifies selling pressure, further driving the stock’s decline.
3. Sky-High P/E Ratio Signals Overvaluation
CRCL’s valuation metrics are eye-popping, even for a high-growth fintech. As of June 2025, the stock’s trailing P/E ratio stands at 237, far above the tech sector average of 30–40. This suggests investors are paying $237 for every dollar of earnings, a level that’s difficult to sustain without exceptional growth.
Why It Matters: High P/E ratios indicate market optimism but also heightened risk. If Circle fails to meet lofty expectations, investors may sell off, driving the stock lower.
CRCL’s EV/EBITDA of 197.04 and price/sales of 31.02 further highlight its premium pricing, compared to peers like Coinbase.
Since its IPO on June 5, 2025, at $31 per share, CRCL has skyrocketed 749.84%, outpacing the S&P 500’s 2.44% year-to-date gain. This parabolic run – driven by USDC’s growth, regulatory clarity, and the Fiserv deal – has stretched the stock’s valuation to unsustainable levels, inviting profit-taking.
Why It Matters: Stocks with such rapid gains often face sharp corrections as early investors lock in profits. CRCL’s 80% rally in the week ending June 23, 2025, likely triggered sell-offs, as seen in yesterday’s 12% drop from $298.99.
My Insight: Analyzing historical IPO data, I’ve seen that gains above 500% in under a year often lead to 20-30% pullbacks, aligning with CRCL’s current trajectory.
As anticipated, CRCL filled the gap between $206 and $200 on Wednesday, confirming a key technical expectation that had been building since last week’s sharp rally.
According to technical theory, such gaps – caused by frenzied buying – tend to be filled as the stock retraces to close the gap.
Why It Matters:Technical traders see gaps as magnets for price action. The failure to hold above $250 signals bearish momentum, potentially driving CRCL lower.
My Insight: Studying CRCL’s candlestick charts, I noted the gap around $200–$206, which aligns with heavy selling pressure.
Last week, ARK sold 1.25 million CRCL shares for approximately $243 million, followed by another 415,844 shares on Monday, June 23, 2025, for $109.6 million, reported by Cointelegraph. In total, ARK has offloaded about 1.7 million shares, representing 37% of the 4.5 million shares it purchased at IPO.
Why It Matters: Wood’s moves, tracked via SEC filings and trade reports, often influence retail investors. The sale of 1.7 million shares – valued at over $352 million combined – signals potential skepticism about CRCL’s current valuation, prompting others to sell and amplifying today’s decline.
Despite the sales, ARK retains 2.6 million Circle shares, making it the third-largest holding across Wood’s ETFs.
My Insight: ARK’s pattern of reducing exposure after CRCL’s 750% post-IPO rally mirrors Wood’s past strategy with high-flyers like Tesla, balancing profit-taking with long-term conviction in Circle’s stablecoin-driven growth.
7. BIS Delivers Damning Verdict on Stablecoins in Tuesday Release
The fifth and most recent driver of CRCL’s accelerated selloff came from the Bank for International Settlements (BIS) – an influential global institution owned by 63 central banks.
In a press release issued Tuesday, the BIS dealt a fresh blow to Circle’s core business model, as reported by CoinDesk.
The report warned that stablecoins cannot reliably maintain one-to-one parity with central bank money, may struggle with liquidity under stress, and lack proper controls to prevent financial crime. While the BIS expressed support for tokenization and digital innovation, it clearly positioned central bank digital currencies (CBDCs) as the preferred path forward.- not privately issued stablecoins like USDC.
This public disapproval from the world’s top monetary coordination body has spooked investors and deepened fears that global regulators may tighten oversight on stablecoins. For Circle, whose USDC is its flagship product with over $61.9 billion in circulation, the report undermines its long-term vision of replacing traditional banking rails with private tokenized dollars. The timing of the statement, amid already intense downward pressure on CRCL, has only accelerated the stock’s selloff.
Is a Correction Toward $200 Inevitable?
Latest Update – CRCL Corrects to $200, Closes at $198.62 on Wednesday, June 25. The stock has now plunged more than 33% from its all-time high of $298.99 earlier in the week.
CRCL’s 14% drop to $226, reflects a confluence of factors: an overheated P/E ratio, profit-taking after a 750% rally, a technical price gap, and selling pressure from Cathie Wood’s ARK. While Circle’s fundamentals – such as USDC’s $2 trillion in annual transactions and the Fiserv partnership – remain strong, the stock’s valuation suggests continued downside risk.
Bearish Case: A break below $250 could drive CRCL toward $210–$190, filling the technical gap and aligning with a more sustainable valuation.
Bullish Case: New catalysts, like additional USDC partnerships or FIUSD’s successful launch, could push CRCL above $270, resuming its rally.
My Insight: Analyzing CRCL’s volatility, I see parallels with 2021 crypto stocks like Coinbase, which corrected 30% after similar runs. Investors should monitor $250 support and watch for macro crypto sentiment shifts.
This article is for informational purposes only and should not be considered financial advice. Investing in stocks, cryptocurrencies, or other assets involves risks, including the potential loss of principal. Always conduct your own research or consult a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred from actions based on this article. While efforts have been made to ensure accuracy, economic data and market conditions can change rapidly. The author and publisher do not guarantee the completeness or accuracy of the information and are not liable for any errors or omissions. Always verify data with primary sources before making decisions
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.
