Circle shares fall 15% in afternoon trade, nearing session low.

Circle shares fall 15% in afternoon trade, nearing session low.

June 19, 2025

Circle (CRCL) shares experienced a significant drop in afternoon trading on June 19, 2025, falling by 15% and nearing their session low. The stock, which had been trading near its 52-week high of $200.90, closed at $199.59, down from its opening price of $235 [2].

The sell-off comes after a week of strong performance, with Circle's stock surging nearly 50% since Friday, June 17. The stock's recent rally was driven by positive analyst ratings, the U.S. Senate's approval of the GENIUS Act, and a successful initial public offering (IPO) [2]. However, the stock's decline can be attributed to several factors.

Firstly, the U.S. Senate's approval of the GENIUS Act, which aims to establish regulatory rules for stablecoins, has been a significant driver of Circle's stock performance. However, the market may be adjusting to the new reality of stablecoin regulation, leading to a correction in the stock price.

Secondly, the geopolitical tensions in the Middle East, particularly the U.S. strike on Iranian nuclear sites and the subsequent rise in oil prices, have created uncertainty in the market. The potential for a broader conflict in the Middle East could disrupt global oil flows and increase energy prices, which could negatively impact the stock market and the broader economy [1].

Moreover, the sell-off in Circle shares may also be a reaction to the company's decision to go public through a traditional IPO instead of a SPAC merger. According to billionaire Chamath Palihapitiya, Circle employees lost nearly $3 billion due to the traditional IPO route, as they had to sell 14.4 million shares at $31 per share to proceed with the IPO [4]. This could have created a sense of unease among investors, leading to a sell-off in the stock.

Despite the recent decline, Circle's stock has shown signs of recovery, with pre-market data indicating a 3.43% gain. This bounce back suggests that investors may be regaining confidence in the company's long-term prospects, particularly as the regulatory environment for stablecoins improves [2].

In conclusion, Circle shares experienced a significant sell-off in afternoon trading on June 19, 2025, falling by 15% and nearing their session low. The decline can be attributed to several factors, including the market's adjustment to stablecoin regulation, geopolitical tensions in the Middle East, and the company's decision to go public through a traditional IPO. However, the stock's recent recovery suggests that investors may be regaining confidence in Circle's long-term prospects.

References:

[1] https://www.cnbc.com/2025/06/22/stock-market-today-live-updates.html
[2] https://in.investing.com/news/analyst-ratings/seaport-global-initiates-circle-stock-with-buy-rating-on-stablecoin-growth-93CH-4883349
[3] https://cryptoslate.com/insights/ark-invest-sells-nearly-100m-in-circle-shares-in-the-last-2-days/
[4] https://coingape.com/circle-employees-lost-3-billion-despite-crcl-stock-rally-by-700-says-chamath-palihapitiya/