CRLC Tanks as Wall Street Snubs Circle’s Stablecoin Gambit—Is Crypto’s Darling Losing Its Shine?
Another day, another crypto 'revolution' meets Wall Street's cold shoulder. Circle's CRLC took a nosedive as traders shrugged off its stablecoin promises—because nothing says 'store of value' like a 20% intraday swing, right?
When hype meets balance sheets
Turns out institutional investors still prefer their volatility served with FDIC insurance. While Circle CEO Jeremy Allaire waxes poetic about dollar-pegged digital utopias, the NASDAQ ticker tells the real story: a 14% freefall by midday as algo traders treated CRLC like a meme-stock cautionary tale.
The cynical take
Maybe Wall Street's just salty they didn't invent this particular wheel. Or perhaps—just perhaps—they remember how 'stable' Terra's UST was right before it became the crypto equivalent of the Hindenburg. Either way, today's bloodbath proves even blue-chip crypto plays can't escape the sector's golden rule: when the music stops, the bagholders are always wearing MetaMask.
More Bearish Sentiment about Circle (CRCL) Stock
Furthermore, Mizuho analysts cite that the GENIUS Act could bring major competition for the Circle stablecoin. Should more entrants in the stablecoin space come in, Circle’s market share and current dominance could shrink, sending the stock back down to earth. Jeff Cantwell of Seaport Research Partners says “We think the overall stablecoin ‘market cap’ will reach $500B by the end of next year; longer-term, we think it ultimately can reach $2T.” Such growth, if Circle remains the dominant company in the market share, could end up keeping CRLC stock valuable.
Numerous Wall Street analysts have concurred with Mizuho’s analysis of Circle stock, projecting it to eventually come crashing down. Analysts at Jeffries aren’t convinced that the Circle (CRCL) stock rally is more than a hype cycle. In a recent note, analyst Trevor Williams argued that U.S. consumers still prefer the current card-based system, which is fast, secure, and packed with perks. Others note Circle’s sky-high valuation, now trading near 180x earnings, and warn of risks tied to its thin 25% free float. RIA Advisors’ Michael Lebowitz also sees Circle’s role more like a money market proxy for crypto traders than a serious challenger to Visa or Mastercard.
Wall Street remains divided on the stock, with 8 Buy, 6 Hold, and 3 Sell ratings, according to Bloomberg data. CNN analysts surveyed on CRCL stock are also mixed, with 50% of analysts calling the stock a buy, 36% suggesting to hold, and the remaing 14% opting to sell CRCL.
