Three Reasons Why Circle’s Stock Is Under Pressure
The post Three Reasons Why Circle’s Stock Is Under Pressure appeared on BitcoinEthereumNews.com.
In brief Circle’s stock ended last week at $93.6, down roughly 26% from its pre-crash open near $126. A Senate that could ban passive stablecoin yield directly threatens Circle’s dominant revenue stream. Analysts say the decline reflects uncertainty about Circle’s business model, not just a market overreaction. Circle Internet Group’s stock has shed roughly a quarter of its value over the past week, weighed down by three unresolved pressures that appear to challenge the core assumptions behind the company’s investment case. It opened March 24 near $126, crashed 20% to close at $101, then posted a brief recovery the following session before sliding again over the next two days to end the week at $93, with three of the past four sessions closing in the red, according to historical data on Google Finance. The drop from Tuesday last week came after two pieces of bad news that landed the same day: a Senate draft bill that could ban the returns Circle distributes to stablecoin holders, and an announcement from its rival, Tether, that it had hired a major accounting firm to audit its reserves for the first time. Weeks before the decline, Circle was posting double-digit gains, surging roughly 60% since its Q4 earnings report. Analysts had also been broadly optimistic, with Clear Street raising its price target for Circle to $152 earlier this month. But the Senate’s language on a possible yield ban and the Tether audit announcement remain unresolved, and both appear to have continued weighing on the stock in the sessions that followed. The draft text is expected to be released publicly this week, arriving ahead of a Senate Banking Committee markup targeted for the second half of April, a deadline legislators have said the bill must clear to avoid stalling until after the midterm elections.…
Filed under: News - @ March 30, 2026 4:23 am