Peter Schiff Warns Circle Stock (CRCL) Could Drop Further
Peter Schiff, a well-known gold advocate and crypto skeptic, has cautioned traders that Circle stock (CRCL) could face further declines amid sector-wide volatility and regulatory pressures. After soaring 1,000% post-IPO to $300 in June 2025, CRCL shares have fallen 32% this month to $86.3, reflecting profit-taking and macroeconomic headwinds. USDC, Circle’s dollar-backed stablecoin and the second-largest stablecoin by market cap, continues to see trading volumes dip over 35% year-over-year. Schiff argues that stablecoin issuers like Circle remain vulnerable due to regulatory uncertainties—highlighted by the SEC’s intensified oversight—and competition from rivals like USDT. Technical indicators show CRCL trading below key moving averages with an RSI near oversold levels, signaling downside risk if support at $80 fails. While Circle’s Q3 revenue hit $250 million, net income margins have compressed under rising compliance costs. Schiff’s bearish outlook underscores the high-risk nature of crypto-related stocks and suggests traders consider trimming positions to mitigate potential losses.
Bearish
Peter Schiff’s cautionary comments contribute to negative sentiment around Circle stock, reinforcing concerns over stablecoin issuer valuations amid regulatory scrutiny. CRCL’s steep drop from $300 to $86.3, combined with declining USDC volumes, bearish technical signals, and compressed profit margins, suggests limited near-term upside. Historical parallels, such as the TerraUSD depeg in 2022, illustrate how regulatory fears and market corrections can trigger sharp sell-offs. In the short term, traders may reduce exposures to CRCL, while long-term investors should monitor regulatory developments and Circle’s financial performance for potential recovery catalysts.