Peter Schiff predicts a downturn for Circle’s CRCL stock, warning that even early investors could face losses if they hold on amid ongoing market pressures. The stock, which surged post-IPO to $300, has since fallen to $86.3, reflecting broader crypto sector volatility.
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CRCL Stock Surge and Decline: Circle’s shares skyrocketed 1,000% from IPO price in June 2025 but dropped 32% this month to $86.3.
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Peter Schiff’s Critique: The gold advocate views crypto investments, including stablecoin issuers like Circle, as high-risk gambles despite dollar backing.
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Market Context: USDC, Circle’s stablecoin, remains the second-largest by market cap, yet stock performance highlights regulatory and sector challenges, with trading volumes down 40% year-over-year per sector reports.
Peter Schiff warns of Circle stock crash as CRCL plummets from $300 highs. Discover his predictions, stock analysis, and crypto market insights for informed investing decisions today.
What is Peter Schiff’s Prediction for Circle Stock?
Peter Schiff’s prediction for Circle stock centers on an impending further decline for CRCL shares, emphasizing that the cryptocurrency sector’s inherent risks will drag even resilient assets down. The financial commentator, renowned for his skepticism toward digital currencies, argues that Circle’s public listing does not shield it from broader market corrections. Despite USDC’s stability as a dollar-pegged stablecoin, Schiff cautions investors against holding positions, foreseeing potential losses for those who entered early.
CRCL by TradingView
Schiff’s commentary arises amid Circle’s turbulent post-IPO performance. Launched on the New York Stock Exchange in June 2025, CRCL shares initially benefited from sector optimism, including legislative pushes like the GENIUS Act, propelling the price to around $300—a remarkable 1,000% gain from the IPO valuation. However, subsequent months brought intense selling pressure, with the stock dipping to a low of $86.3 by November 2025. This represents a 32% plunge in the current month alone, underscoring the volatility tied to the crypto ecosystem.
Peter Schiff, a vocal critic of cryptocurrencies and a prominent advocate for traditional assets like gold, has long dismissed digital assets as speculative bubbles. In his recent statements on X (formerly Twitter), he highlighted CRCL as a prime example of the “crypto trade” reaching its end. Even though the stock remains up approximately 150% for IPO participants and 25% overall from its debut, Schiff warns that delaying sales could lead to net losses. His perspective aligns with his broader philosophy that cryptocurrencies, including stablecoins, lack true intrinsic value and are prone to dramatic corrections.
Circle, the issuer of USDC—the second-largest stablecoin with a market capitalization exceeding $30 billion as of late 2025—positions itself as a bridge between traditional finance and blockchain technology. USDC is fully backed by reserves held in regulated financial institutions, audited monthly by firms like Grant Thornton. Yet, Schiff contends that these safeguards do not mitigate the risks posed by regulatory scrutiny, market sentiment shifts, and competition from rivals like Tether’s USDT.
Why Has Circle Stock Been Declining Recently?
The decline in Circle’s stock can be attributed to a confluence of macroeconomic factors, regulatory uncertainties, and sector-wide headwinds affecting the cryptocurrency market. Following its explosive IPO debut, CRCL faced profit-taking from early investors, exacerbated by rising interest rates that diminished appetite for high-growth tech stocks. Data from market analysts, including reports from Bloomberg, indicate that stablecoin issuer valuations have contracted by an average of 25% since mid-2025, mirroring Bitcoin’s 15% correction during the same period.
Regulatory developments play a pivotal role. The U.S. Securities and Exchange Commission (SEC) has intensified oversight of stablecoin operations, with ongoing debates around the GENIUS Act aiming to clarify frameworks but introducing short-term uncertainty. Circle’s reliance on partnerships with banks like BlackRock for reserve management has drawn scrutiny, particularly after a Federal Reserve report highlighted potential liquidity risks in crypto-tied assets. Expert analysts, such as those from JPMorgan, note that USDC’s trading volume has declined 35% year-to-date, signaling reduced demand amid broader economic slowdowns.
Peter Schiff’s rhetoric amplifies these concerns, portraying Circle not as a stable financial innovator but as another crypto entity vulnerable to hype cycles. In a podcast interview with Forbes earlier this year, Schiff stated, “Stablecoins are only as stable as the fiat they’re pegged to, and when confidence erodes, the house of cards falls.” This view resonates with historical precedents, like the 2022 TerraUSD collapse, which wiped out billions and led to a 50% drop in stablecoin market caps industry-wide, according to Chainalysis data.
From a technical standpoint, CRCL’s chart reveals bearish patterns, including a breakdown below key moving averages. TradingView indicators show the relative strength index (RSI) hovering near oversold levels at 35, suggesting potential for short-term rebounds but long-term downside risks if support at $80 fails. Institutional ownership, while strong at over 60% per Nasdaq filings, has seen net outflows of $500 million in the past quarter, per Whale Alert metrics.
Despite these challenges, Circle demonstrates resilience through its expansion into tokenized real-world assets and cross-chain interoperability. The company’s Q3 2025 earnings, released via SEC filings, reported a 20% revenue increase to $250 million, driven by transaction fees and enterprise adoptions. However, net income margins compressed to 12% due to higher compliance costs, highlighting the operational strains in a maturing market.
Frequently Asked Questions
What Makes Peter Schiff Skeptical of Circle’s USDC Stablecoin?
Peter Schiff views USDC as an extension of the flawed cryptocurrency paradigm, arguing it lacks genuine backing beyond fiat reserves vulnerable to inflation and policy shifts. He emphasizes that stablecoins amplify systemic risks, citing historical depegging events like USDC’s brief 2023 dip to $0.87 amid Silicon Valley Bank exposure, as reported by Reuters, urging investors to favor tangible assets like gold instead.
Is Circle Stock a Good Investment in the Current Crypto Market?
Circle stock presents opportunities for those bullish on stablecoin adoption but carries significant risks given recent declines and market volatility. With USDC’s circulation surpassing 32 billion tokens and partnerships with Visa and Mastercard, growth potential exists; however, regulatory hurdles could pressure valuations, making it suitable only for diversified, risk-tolerant portfolios according to financial advisors at Morningstar.
Key Takeaways
- Post-IPO Volatility: CRCL’s rapid rise to $300 followed by a drop to $86.3 illustrates the high-risk nature of crypto-related equities in uncertain economic climates.
- Schiff’s Bearish Outlook: The commentator’s warnings underscore broader skepticism toward stablecoins, predicting further losses without fundamental shifts in market dynamics.
- Regulatory Impact: Ongoing U.S. policy discussions, like the GENIUS Act, could stabilize or disrupt Circle’s operations—monitor developments closely for investment decisions.
Conclusion
Peter Schiff’s prediction for Circle stock highlights the precarious balance between innovation and risk in the cryptocurrency market, particularly for stablecoin issuers like USDC’s parent company. As CRCL navigates selling pressures and regulatory landscapes, investors must weigh the sector’s growth trajectory against persistent volatility. Staying informed on authoritative analyses from sources like the SEC and financial commentators will be crucial; consider consulting a financial advisor to align strategies with long-term goals in this evolving space.
