Is it 2021 all over again?
Circle (CRCL) made a splash on the New York Stock Exchange with a significant IPO that saw its share price soar above threefold from the initial $31. This event represents a milestone for the issuer of the USDC stablecoin, after pursuing public listing for years.
For the cryptocurrency sector, this event signifies a solid interest from mainstream investors and suggests that under prior administrations, crypto firms can successfully go public.
However, the reactions among cryptocurrencies were not positive. Bitcoin dropped over 2%, reaching $102,800, marking its lowest point in approximately a month. The CoinDesk 20, an index reflecting the top 20 cryptocurrencies, excluding stablecoins and meme coins, also saw a decrease of more than 3%. Among those leading the decline are SOL, AVAX, and AAVE, all down by about 6%.
The long-term implications of this downward trend remain unclear, yet experienced industry figures are reminded of Coinbase’s IPO in April 2021, which coincided with bitcoin hitting a then-historic high of $65,000. Shortly thereafter, the price fell drastically by nearly 60% to around $28,000.
Following a brief surge in prices, a severe bear market emerged throughout 2022, with bitcoin hitting approximately $15,000 before managing to record new highs only in March 2024, three years following Coinbase’s market entry.
Read more: Bitcoin May Be Headed Towards a 2021-Like Double Top
Key Takeaways:
- Circle’s NYSE debut led to shares more than tripling.
- Cryptocurrencies see declines despite the IPO.
- Market reactions are compared to previous notable IPOs.
