From Nasdaq
June 11, 2025 9:21 pm:

Circle Internet Group (NYSE:CRCL) saw a 270% jump post-IPO, now trading at $115. As the issuer of stablecoin USDC, Circle stands to benefit from the growing stablecoin market. However, with earnings tied to crypto activity, interest rates, and regulation, the stock could fall to $20 if market sentiment changes.

Stablecoins offer a big opportunity as programmable digital currencies pegged to fiat. Circle earns revenue from interest on reserves and rising stablecoin volumes. Political momentum in the U.S. is pushing regulatory clarity for crypto, benefitting Circle. Yet, the volatile crypto market, nearing a peak with Bitcoin at $110k, poses downside risks.

Even though Circle is in stablecoins, it’s not immune to crypto market cycles. Demand for stablecoins is tied to market sentiment, affecting Circle’s revenue streams. With a valuation jump from $7B to over $27B, any slowdown in trading activity or regulatory issues could lead to a decline. The volatility of the sector is evident in Coinbase’s stock collapse from highs to lows in a short period. Circle could fall to $20 if interest income weakens or crypto faces a deeper downturn.

Read more at Nasdaq: Can Circle Stock Drop To $20?