Crypto Stocks Soar — But Circle Plunges 15%: What’s Behind the Sudden Reversal?

TradingKey – After a strong multi-day rally, Circle (CRCL) abruptly reversed course on Tuesday, June 24, plunging 15.49% to $222, despite a broad rebound in crypto-related equities.

While the overall crypto market surged:

- CleanSpark (CLSK) jumped over 13%,

- Coinbase (COIN) gained more than 12%,

- Hut 8 Mining (HUT) and Riot Platforms (RIOT) rose over 8%,

- Strategy (MSTR) added nearly 3%.

Circle, however, broke its winning streak and became the day’s biggest underperformer.

Circle 30-Minute Price Chart – Source: TradingView.

The sharp drop follows a warning from Sean Farrell, Head of Digital Asset Strategy at Fundstrat, who recently cautioned that Circle’s valuation may have outpaced its fundamentals. On Friday, Farrell stated, “The stablecoin trend is real, but it may be time to take profits on Circle.”

Adding to the pressure, Cathie Wood’s ARK Invest has been aggressively trimming its Circle position, offloading 1.25 million shares — roughly one-third of its holdings — in recent weeks. This sizable divestment may have triggered copycat selling among retail and institutional investors.