While Bitcoin Stumbles… Circle Stock Price Soars 8 Times in 17 Days

While Bitcoin, the representative item of the cryptocurrency market, continues a sluggish trend failing to break out of the range, stock prices of companies related to stablecoins are showing explosive upward trends.

According to the American cryptocurrency exchange Coinbase on the 20th (local time), as of 5:12 PM Eastern Time, Bitcoin was trading at $103,617, down 0.81% from the previous day. It has been continuously retreating from the all-time high of $112,000 recorded on the 21st of last month, continuing a trend that does not meet market expectations.

Bitcoin's weakness is analyzed to result from increased risk aversion by investors due to heightened military tensions between Iran and Israel, and from the timing of the US Federal Reserve's interest rate cut being delayed more than expected, which has weakened investor sentiment.

In contrast, the stock price of Circle, the stablecoin issuer, is continuing a surge. On this day at the New York Stock Exchange, Circle closed at $240.28, skyrocketing by 20.39% in just one day. Considering that the public offering price at the first listing on the 4th, just 17 days ago, was $31, the stock price has soared more than eight times during this period. The market capitalization has also expanded to $58.2 billion, approximately 80 trillion Korean won.

Stablecoins are cryptocurrencies designed to be linked to major legal currencies like the US dollar or the euro. Due to the advantages of low price volatility and fast remittances and settlements, they are being revisited as key elements of the global financial infrastructure. Particularly, as the possibility of serving as tools to meet US Treasury demand and maintain dollar hegemony is highlighted, institutional investors' interest is also increasing.

USDC, issued by Circle, is currently the second largest stablecoin in the global market after Tether (USDT). It holds a 23% market share in the overall stablecoin market, securing a significant position following Tether, which holds 67%.