USDC Issuer Circle Faces 15.5% Stock Plunge as Crypto Market Shows Fragility

Circle Internet Group (CRCL) shares dropped sharply by 15.5% in a single trading session, with losses continuing in after-hours trading. This sell-off wiped out roughly $5 billion from the market capitalization of the USDC stablecoin issuer, raising concerns about its future momentum following a 750% surge since its June 5 IPO at $31 per share.

While regulatory developments like the U.S. Senate's GENIUS Act passage on June 17 initially boosted the sector—fueling a 76% rally for CRCL—and partnerships with major players like Fiserv and PayPal added optimism, the positive sentiment was short-lived. ARK Invest ETFs, led by Cathie Wood, began offloading positions, casting doubt on Circle's valuation.

The downturn highlights the broader fragility of the crypto market. Although stablecoins such as USDC serve as critical liquidity anchors, their issuers remain exposed to regulatory scrutiny and shifts in institutional sentiment. This volatility underscores the crypto sector's transitional phase, caught between growing institutional adoption and lingering speculative excess.