TradingKey – Ark Invest has aggressively sold Circle shares for two consecutive days, putting pressure on the stock price. The GENIUS Act could be the key factor influencing its future performance.

On Tuesday, Ark Invest’s three ETFs offloaded over 300,000 shares of Circle Internet Group Inc. (CRCL), generating $44.76 million in revenue. This follows Monday’s sale of 340,000 shares, worth $51.7 million. Despite selling over 600,000 shares, Ark Invest still holds nearly 4 million Circle shares.

Circle Stock Price Chart – Source: TradingView.

Since its June 5 IPO, Circle’s stock has surged 139% at its peak. However, in the past two trading sessions, the stock has pulled back sharply, facing heavy resistance at higher levels. With Ark Invest continuing to sell, signs of capital outflow have emerged, significantly weakening investor confidence.

Short-Term Outlook

If Ark Invest continues selling, Circle’s stock may struggle to rise and could correct toward $100. However, if Ark Invest halts its sell-off, retail investors may follow suit, reducing selling pressure and potentially driving the stock to new highs, especially given the strong demand for stablecoins.

Long-Term Outlook

Circle’s future largely depends on the GENIUS Act. Earlier today, the U.S. Senate passed the bill, moving it to the House of Representatives for further deliberation. The House must decide whether to approve the GENIUS Act or shift focus to its own proposed Stablecoin Transparency and Accountability Act, which could significantly impact the stablecoin market.

If the GENIUS Act passes, the stablecoin sector will receive a major boost, benefiting Circle as the issuer of USDC, the world’s second-largest stablecoin. Nick Tomaino, founder of 1confirmation, stated on X, “The GENIUS Act is extremely favorable for crypto—stablecoin market capitalization could grow 10x as a result.”

Conversely, if the House unexpectedly rejects the GENIUS Act, the stablecoin market could suffer, leading to capital flight and further declines in Circle’s stock—potentially dropping to its IPO price of $31.

Find out more