According to reports, Cathie Wood’s ARK Invest dumped 415,844 Circle shares (CRCL) worth around $110 million on June 23. Circle went live for trading earlier this month on June 5. The stock made its debut for $31. Since its launch, the stock hit a peak of $299 on Monday, June 23.
Why Did Circle Rally So Big?
CRCL’s big rally could be due to the GENIUS stablecoin act gaining considerable momentum. The US Senate passed the act on June 17. The legislation must now go through the House before being presented to President Trump.
The GENIUS stablecoin act, if passed into law, will bring much-needed clarity to the stablecoin market. It will also ensure issuers, such as Circle and Tether, maintain dollar-based stablecoins to a 1-to-1 peg. The law may also allow US banks and other entities to make further use of stablecoins. The industry may see a surge in adoption if regulatory clarity is given.
Also Read: Coinbase & Circle Stocks Surge on GENIUS Stablecoin Bill
Will The Stock Face A Correction?
Circle (CRCL) has already seen a correction since its Monday high. The stock had dipped to $247.8, but has since reclaimed the $263.45 level.
The correction could be due to ARK Invest’s big sell. Other investors may have also booked profits. ARK Invest’s big sell-off could lead to more investors dumping the stock. Given the rebound, it could be that the sell-off was absorbed by the demand. This could signal another rally to a new high over the coming days.
If the GENIUS Act passes the House, Circle (CRCL) could see another big rally. President Trump will most likely sign the bill when presented to him. Trump has been very vocal about his support for the crypto industry. Trump and pro-crypto SEC head Paul Atkins could together make the crypto environment in the US bloom over the coming years.
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