{"id":4774,"date":"2025-07-02T14:33:00","date_gmt":"2025-07-02T14:33:00","guid":{"rendered":"https:\/\/bitunikey.com\/news\/circle-stock-falls-hard-as-ark-sells-fed-rate-cuts-loom\/"},"modified":"2025-07-02T14:33:03","modified_gmt":"2025-07-02T14:33:03","slug":"circle-stock-falls-hard-as-ark-sells-fed-rate-cuts-loom","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/circle-stock-falls-hard-as-ark-sells-fed-rate-cuts-loom\/","title":{"rendered":"Circle stock falls hard as Ark sells, Fed rate cuts loom"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Circle\u2019s stock price has pulled back in recent days as post-initial public offering momentum faded.<\/p>\n<p>Circle Internet is trading at $192, down over 35% from its June peak, cutting its valuation from $70 billion to $42 billion.<\/p>\n<p>Several factors have contributed to CRCL\u2019s loss of momentum. First, the decline followed a downgrade from JPMorgan, the bank that led its IPO. The firm initiated coverage with a neutral rating and set a price target of $80, well below current levels.<\/p>\n<p>Second, concerns are growing that Circle is significantly overvalued. Its market capitalization is about $20 billion below USDC\u2019s $62 billion valuation and remains far above its revenue and profit figures.<\/p>\n<p>Circle\u2019s 2024 financial results show revenue of $1.67 billion, up from $772 million a year earlier. Net profit reached $267 million, implying a trailing price-to-earnings ratio of 157, an expensive multiple by most standards.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Third, growth in USDC\u2019s market capitalization has stalled. According to CoinGecko, it has hovered around $61.6 billion for several months. Since Circle earns the bulk of its revenue from interest on U.S. government bonds, a plateau in stablecoin supply could weigh on future growth.<\/p>\n<p>The revenue growth may also be impacted by the Federal Reserve when it restarts its interest rate cuts. In a statement on Tuesday, Jerome Powell said that the bank could cut rates as soon as in July if the upcoming data showed that inflation dropped in June.<\/p>\n<p>Circle stock price has also plunged as some investors book profits after the substantial post-IPO rally. A good example of this is Cathie Wood, whose Ark Invest has sold shares worth millions in the past few weeks.\u00a0<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\">Circle stock price analysis<\/h2>\n<figure class=\"wp-block-image size-large\"><picture loading=\"lazy\" decoding=\"async\" class=\"wp-image-14393652\"><source type=\"image\/webp\" ><\/source><\/p>\n<\/picture>\n<\/figure>\n<p>CRCL stock chart | Source: <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/NYSE-CRCL\/\" target=\"_blank\">TradingView<\/a><\/p>\n<p>The hourly chart shows that CRCL has dropped from its all-time high of $298 to $192. On a positive note, the stock found support at the 50% Fibonacci retracement level, near $180.<\/p>\n<p>It has also formed a falling wedge pattern, defined by two descending and converging trendlines. This is generally viewed as a bullish reversal formation in technical analysis.<\/p>\n<p>If buyers step in, Circle stock could resume its uptrend. The next level to watch would be the all-time high of $298. A continuation of the rally is possible ahead of earnings and as interest in stablecoin infrastructure persists.<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Circle\u2019s stock price has pulled back in recent days as post-initial public offering momentum faded. Circle Internet is trading at $192, down over 35% from its June peak, cutting its&hellip;<\/p>\n","protected":false},"author":1,"featured_media":168,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/4774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=4774"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/4774\/revisions"}],"predecessor-version":[{"id":4775,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/4774\/revisions\/4775"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/168"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=4774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=4774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=4774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}