Title: Soared 272%, Then Suddenly "Wiped Out"! Circle Plummets 8.1% — Is the Speculative Bubble Bursting?

Circle Internet (NYSE: CRCL), the issuer of the popular stablecoin USDC that has been making waves in the U.S. stock market, suffered its biggest single-day drop on Tuesday, sending shockwaves through investor circles.

【CRCL Intraday Chart, Source: Futu】

The stock closed at $105.91, down 8.1%, after hitting a high of $134.62 earlier in the session. Trading volume surged to $2.706 billion, ranking it No. 20 on the list of most actively traded U.S. stocks.

Just days earlier, CRCL had rallied an astonishing 272% over three consecutive trading sessions, fueled by renewed optimism in the broader crypto market. However, this sharp pullback has sparked concerns about profit-taking and whether speculative capital is beginning to retreat.

As the issuer of USDC, the world’s second-largest stablecoin, Circle's recent rally was largely driven by improving sentiment in the cryptocurrency sector. With Bitcoin and Ethereum rebounding, investors turned their attention to companies closely tied to blockchain payment infrastructure — pushing up shares like CRCL.

However, industry observers have issued warnings: Circle has yet to release detailed financial reports or offer clear operational guidance. Its valuation remains heavily reliant on market sentiment and thematic investing rather than solid fundamental support. In such conditions, short-term speculation risks are rising.

Analysts caution that if regulators increase scrutiny — for example, by imposing stricter reserve transparency requirements or tightening compliance obligations for stablecoin issuers — Circle’s compliance costs could rise significantly, weighing on future profitability.

Moreover, institutional investors note that without new partnership announcements or favorable policy developments, Circle may face even greater volatility ahead. The current price action may signal that investors are starting to reassess the company’s true value more rationally.

In short, while Circle represents a key player in the evolving digital asset ecosystem, the current market reaction underscores the importance of caution amid lofty expectations and regulatory uncertainties.