---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/31100415.md"
description: "$Circle(CRCL.US) recently plummeted from a high of nearly HK$300, dropping 15.5% in a single day on Tuesday and dipping slightly after hours, bringing its market cap back down to $54 billion. Seeing such a dramatic drop, everyone in the Longbridge community is asking whether it can still rebound.Looking back at the recent trend, CRCL started a multi-day rally on June 18, with trading volume skyrocketing to $26.4 billion in a single day and a turnover rate nearing 60%. Clearly, it was overhyped, with a flood of capital chasing short-term gains—so a pullback is normal. But that doesn’t mean CRCL’s run is over! In fact, understanding CRCL comes down to three risks, and as of now, I don’t see any real danger—so where’s the talk of a reversal coming from?First, regulatory risk. Yesterday, the Bank for International Settlements (BIS) released a report highlighting the risks of stablecoins, but these concerns aren’t new. On the contrary, Circle itself has high transparency in reserves and fairly standardized management. Moreover, U.S. regulatory direction on stablecoins is gradually becoming clearer, which is a long-term positive, not a negative. The BIS represents traditional financial institutions and has its own agenda—we should take their words with a grain of salt.Second, overreliance on interest margins? Some say Circle is like a bank that can’t lend, with interest income as its main revenue source (by investing reserve funds in interest-bearing assets). So if the U.S. cuts rates, wouldn’t that hurt its profits? But in reality, the Fed is expected to cut rates only moderately, not drastically, and Circle is expanding into new businesses like payments and settlements, not just relying on interest margins. On the other hand, rate cuts could boost demand for stablecoins, potentially increasing circulation.Third, and most importantly—the risk of a confidence crisis. The biggest pillar for stablecoins is reserves, and the market worries about a run if problems arise. But the reality is, 90% of Circle’s USDC assets are in government money market funds managed by BlackRock, with custody by BNY Mellon, making them highly secure. Barring an extreme black swan event, the likelihood of a large-scale loss of confidence is low.In short, CRCL’s party isn’t over. I’m no prophet and can’t give a target price, but judging by the momentum, CRCL is just cooling off after overheating—time to find a seat and wait."
datetime: "2025-06-25T05:33:32.000Z"
locales:
  - [en](https://longbridge.com/en/topics/31100415.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/31100415.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/31100415.md)
author: "[躺平致富](https://longbridge.com/en/profiles/8547308.md)"
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/topics/31100415.md) | [繁體中文](https://longbridge.com/zh-HK/topics/31100415.md)


# $Circle(CRCL.US) recently plummeted from a high of…


### Related Stocks

- [BlackRock, Inc. (BLK.US)](https://longbridge.com/en/quote/BLK.US.md)
- [Circle (CRCL.US)](https://longbridge.com/en/quote/CRCL.US.md)

## Comments (23)

- **刚来不长时间的长桥账 · 2025-06-26T00:33:49.000Z**: I think 170 is a reasonable entry point
- **买横买坑不买竖 · 2025-06-25T12:07:30.000Z**: Couldn't help but read it in Cantonese 😂, please continue writing in Cantonese.
- **赚钱买自由的Celina · 2025-06-25T08:19:13.000Z**: You have more words, I believe you
- **tommy0827 · 2025-06-25T07:11:36.000Z · 👍 8**: Let me try to summarize the translationCRCL's daily trading volume can reach 26.4 billion with a turnover rate of 60%, clearly overheated speculation with a lot of capital chasing short-term gains. This pullback is actually quite normal, but it doesn't mean the CRCL rally is over. CRCL's risks boil 
  - **小韭菜-卢克** (2025-06-25T10:34:32.000Z): Good person!
- **格林UP · 2025-06-25T07:10:06.000Z · 👍 1**: As for BIS, it's a bit ridiculous. At the same time, there's good news about coins, and institutions are singing praises to attract funds. Is there a connection? I think the connection is too big...
- **格林UP · 2025-06-25T07:08:01.000Z**: I think 200 is the psychological defense line. If the main force fails to control it and it falls below 200 with weak rebound, there will be a big crash. Then, similar concepts won't be playable anymore, and confidence will vanish instantly. I hope the manipulators won't drink poison to quench thirs
- **李老师是我老师 · 2025-06-25T07:02:13.000Z**: Awesome, I really didn't understand all of it.
- **All  IN · 2025-06-25T06:36:29.000Z**: If you don't understand, listen to my explanation. The big shot said the game has just begun, just lie flat.
- **告别失眠 · 2025-06-25T06:36:27.000Z**: Continue with this style, don't care if they understand or not
- **小罗麻 · 2025-06-25T06:06:34.000Z**: I don't understand Cantonese. Could someone kindly summarize it briefly?
- **招财福 · 2025-06-25T06:02:52.000Z**: After reading, I finally feel a bit of comfort in my heart 🥺
- **九五二七 · 2025-06-25T05:42:43.000Z · 👍 5**: Big bro, take care of us mainlanders next time 🤣
  - **躺平致富** (2025-06-25T05:57:27.000Z): Pay attention next time
- **抄底大师 · 2025-06-25T05:42:12.000Z**: speak human words
  - **xiayesuifeng** (2025-06-25T05:55:37.000Z): This is Cantonese, just use translation if you don't understand.
  - **第三動能交易帝國** (2025-06-25T07:02:27.000Z): So Hong Kong people are not human?
- **Jany · 2025-06-25T05:38:12.000Z · 👍 5**: You'd better speak English, Chinese is even harder to understand than English.
  - **就想赚点生活费** (2025-06-25T05:39:07.000Z): This is Cantonese😂
- **回本好难 · 2025-06-25T05:35:18.000Z · 👍 4**: 😂Really want to understand, but it's really hard
  - **躺平致富** (2025-06-25T05:37:16.000Z): Oops, didn't notice. Will lean towards Mandarin in the future.
  - **主力** (2025-06-25T05:40:00.000Z): In simple terms, he said this stock can still rise, but you need to find a relatively low position to enter the market.
  - **我不想说** (2025-06-26T00:36:04.000Z): Wow, it's so heartwarming to see Cantonese.