CRCL Stock Jumps 18% on USDC Growth – Circle Trend Reversal or Dead Cat Bounce?
Circle shares surged 18% on Thursday, breaking a two-month downtrend, as investors welcomed fresh regulatory clarity and growing momentum...
Quick overview
- Circle shares surged 18% as investors reacted positively to new regulatory clarity and momentum in stablecoins.
- USDC circulation exceeded $72 billion, reflecting a significant increase in practical adoption for everyday transactions.
- The passage of the GENIUS Act by the U.S. Senate provided a clearer regulatory framework, boosting sentiment across the crypto sector.
- Circle's recent stock performance indicates a potential trend reversal, supported by growing investor confidence despite ongoing market volatility.
Circle shares surged 18% on Thursday, breaking a two-month downtrend, as investors welcomed fresh regulatory clarity and growing momentum in stablecoins and digital finance.
Circle’s Position in the Digital Finance Shift
The rally has brought Circle (NYSE: CRCL) back into focus as a bridge between traditional banking and blockchain-based assets. Following its successful IPO earlier this year, the company now stands at the center of a market that is regaining stability after prolonged volatility.
Circle’s latest financial results underscore its strength:
- USDC circulation topped $72 billion, more than double last year’s levels.
- Reserve income surged, thanks to higher interest on safe assets backing USDC.
- Blockchain transaction volumes rose, showing increased real-world adoption of stablecoins.
This growth highlights the shift from speculation to practical use, as more businesses and individuals adopt USDC for everyday transactions.
GENIUS Act Sparks Market-Wide Rally
The biggest catalyst came from Washington. The U.S. Senate passed the GENIUS Act by a wide 68–30 margin, creating a clearer regulatory framework for stablecoins. Investors hailed the move as a historic step toward integrating tokenized dollars into mainstream finance.
The legislation immediately lifted sentiment across the crypto-linked sector. Shares of Coinbase (NASDAQ: COIN) jumped 20%, while other blockchain-related firms also benefited from renewed optimism.
Circle’s IPO Journey and Technical Breakout
Circle’s IPO on the New York Stock Exchange in June valued the company near $18 billion, with shares debuting at $69. Prices later surged as high as $298 before sliding under resistance at the 20-day SMA.
Circle Stock Chart Daily – Breaking Above the 20 SMA
Thursday’s 18% surge broke through that technical barrier, lifting shares above $130 and hinting at a possible trend reversal. Importantly, the rally held strong even as ARK Invest sold 300,000 shares across its funds — proof of investor conviction in Circle’s long-term outlook.
Conclusion: Regulatory Momentum Reinforces Growth Story
Circle’s resurgence illustrates how policy clarity can reignite confidence in digital finance. With USDC adoption climbing, reserve income expanding, and regulators setting a clearer path, Circle looks positioned to play a central role in the evolution of stablecoins and tokenized money.
While volatility in crypto-related stocks is far from over, Circle’s rebound highlights how regulation and institutional trust may be the missing pieces that propel stablecoins into mainstream finance.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save