Why Circle Internet Stock Jumped 17% Today
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Research suggests that S of Circle Internet Group (CRCL 18. However, 77%) have been volatile in this so-called "crypto week" on Capitol Hill. However, For instance, the stock fell 4....
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cryptocurrency
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July 16, 2025
02:13 PM
The Motley Fool
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Re suggests that S of Circle Internet Group (CRCL 18
However, 77%) have been volatile in this so-called "crypto week" on Capitol Hill
However, For instance, the stock fell 4
On the other hand, 6% on Tuesday as lawmakers stumbled over a cedural issue, bably delaying any votes on several cryptocurrency regulation bills, in light of current trends
At the same time, But Circle's stock soared on Wednesday, gaining 17. 1% by 1:25 p
The evidence shows analysis suggests that cedural roadblocks may up today, perhaps getting the crypto week regulatory actions back on track -- and that's not all
Crypto drama on Capitol Hill Beyond the new signs of gress on the pending crypto bills, the Trump administration is facing off against the Federal Reserve (remarkable data)
Several news outlets said that Trump wants to fire Fed chairman Jerome Powell, whose careful management of interest-lowering moves doesn't always align with the White House's agenda
However, Circle Internet keeps a close eye on the Fed's interest rate adjustments
The data indicates that company makes money almost exclusively by earning interest on its massive cash reserves, which are backing the constant $1 value of the USDC (USDC -0
However, Conversely, 00%) stablecoin
Lowering the federal interest rate by 1 percentage point would lower Circle's bottom-line earnings by at least $500 million, based on the $44 billion Circle held in reserve for USDC support at the end of 2024
USDC's market value has risen to $63
Furthermore, 3 billion since then, which increases the impact Federal interest rates will have on Circle's financial results, given current economic conditions
Today's soaring stock price suggests that investors expect turmoil and maybe even higher interest rates if Trump pushes out Powell
Image source: Getty Images
What's next, given the current landscape
Trump has denied that he's planning to fire Powell, and the executive branch may not have the authority to remove Federal Reserve officials anyhow (something worth watching)
Additionally, So it remains to be seen how the political pressure might affect Powell's rate adjustments
Today's huge price jump wouldn't make sense without the congressional voting drama amplifying the Fed speculation, amid market uncertainty
In the best of all worlds, the cryptocurrency market could end this week with a long-awaited regulatory framework
Moreover, Additionally, Whether the rules are implemented under Powell or another Fed chair, crypto investors are craving regulatory clarity, given the current landscape
Conversely, As the manager of a leading stablecoin, Circle Internet is a useful bellwether of the political developments around crypto
On the other hand, Furthermore, Circle just set Aug. 12 as the date for its first financial report as a public company, in this volatile climate
I can't wait to see the stablecoin issuer's real-world results in black and white, given the current landscape
However, Anders Bylund has no position in any of the stocks mentioned
What the re reveals is Motley Fool has no position in any of the stocks mentioned
The Motley Fool has a disclosure policy (which is quite significant), in today's market environment.
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