Is it 2021 all over again? Big news hit the crypto world Thursday as Circle (CRCL) made a splash on the New York Stock Exchange with its debut, skyrocketing to more than triple its IPO price of $31. This marks a significant milestone for Circle, the issuer of the USDC stablecoin, which has been eyeing an IPO for years. For traditional finance, it’s a clear win—proof that strong demand from institutional investors exists and that crypto-native companies can find a path to going public, even under recent administrations.
However, the broader crypto markets weren’t feeling as celebratory. Bitcoin dropped over 2%, falling to around $102,800—its weakest point in about a month—while the CoinDesk 20 index of top cryptocurrencies (excluding stablecoins, memecoins, and exchange tokens) declined over 3%. Leading the selloff are tokens like SOL, AVAX, and AAVE, each down roughly 6%. It’s too soon to say whether this downward trend will last, but industry veterans can’t help but draw parallels to Coinbase’s IPO back in April 2021, which saw Bitcoin hit an all-time high of $65,000. Just two months later, Bitcoin plummeted nearly 60%, dipping to around $28,000. Although it rebounded to reclaim that $65,000 mark briefly, a brutal bear market followed through 2021 and 2022, with Bitcoin bottoming out near $15,000. It wasn’t until March 2024—almost three years after Coinbase’s IPO—that Bitcoin finally reached a new record high.
Stay tuned: some analysts suggest that Bitcoin might be heading toward a double top reminiscent of 2021, hinting that more volatility could be ahead for crypto markets.
