Cathie Wood’s ARK Invest has moved to increase its exposure to Circle Internet Group, buying around $13.9m of shares as CRCL stock trades below every major daily moving average and continues a steep decline from its May peak.
The asset manager disclosed the purchase of 220,012 Circle shares on 23 July, spreading the investment across three of its actively managed exchange-traded funds. The ARK Innovation ETF took the largest portion with 159,517 shares, while the ARK Next Generation Internet ETF added 42,400 shares and the ARK Fintech Innovation ETF bought a further 18,095.
The latest buying came as CRCL fell 4.20% on the day to close at $63.38, having traded between an intraday high of $65.41 and a low of $61.49, according to daily TradingView data. The stock now sits well below its May high close to $140, extending a prolonged slide in the company’s market value.
Circle, which issues USDC – a dollar-pegged stablecoin used widely on crypto exchanges, payment platforms and decentralised finance applications – has been hit by weaker sentiment towards crypto-related firms, with investors becoming more cautious about volatile digital-asset equities.
ARK builds positions into weakness
ARK’s latest move underlines its willingness to add to positions during sharp pullbacks rather than waiting for signs of a technical recovery, although the firm has not suggested that CRCL has definitively found a floor.
The company characterises its investment style as targeting businesses linked to “disruptive innovation” and long-term structural growth. That approach can leave its funds exposed to large price swings as markets reassess high-growth stories.
Earlier in the week, ARK applied the same strategy to another volatile name. As reported by crypto.news, four ARK funds bought 170,634 SpaceX shares worth about $20.45m while the stock was trading below its $135 initial public offering price.
SpaceX subsequently rose 7.10% to $128.37, delivering ARK an early unrealised gain on the new position, according to that report. While SpaceX and Circle operate in different sectors, the two trades highlight ARK’s preference for adding to selected holdings after significant declines, rather than waiting for chart patterns to confirm a rebound.
Regulatory backdrop for Circle and USDC
Circle’s prospects are increasingly tied to the fate of the Digital Asset Market Clarity Act, a proposed US law that would set federal rules for digital-asset markets and clarify how oversight is split between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Senator Cynthia Lummis unveiled an updated version of the bill on 22 July, merging texts advanced by the Senate Banking Committee and the Senate Agriculture Committee. Lummis described the coming weeks as a crucial period for striking a deal that could enable the legislation to pass.
Senate Banking Committee chairman Tim Scott and Senate Agriculture Committee chairman John Boozman have both endorsed the revamped framework. In Lummis’ official release, Boozman argued that the proposal would provide “clearer rules” for consumers, companies and markets while strengthening safeguards around digital-asset activity.
For Circle, passage of the act could lessen regulatory uncertainty facing stablecoin issuers and related financial-services providers. That might help institutional investors evaluate products built on USDC. However, the bill still needs sufficient Senate backing and final approval before any of its measures can take effect.
Despite Republican support, the latest draft faces political resistance. Some Democrats are reported to have raised concerns over how the bill handles crypto-related conflicts involving government officials, an issue that could make it harder to secure the 60 votes generally needed to advance legislation in the Senate.
CRCL technical picture still negative
On the charts, CRCL remains in a clear downtrend despite a modest improvement in momentum indicators. At $63.38, the stock trades below its 20-day simple moving average at $65.68 and well under the 50-day measure at $84.24.
Longer-term trend gauges sit even higher, with the 100-day moving average at $95.02 and the 200-day at $92.14. CRCL is now below all four major moving averages, underscoring the depth of its decline from its May high near $140.
A recent rally attempt pushed the price into the $70–$72 band but failed to hold, according to the daily chart. Analysts tracking the levels suggest that buyers would first need to reclaim the 20-day moving average at $65.68 and then challenge the $70–$72 rejection zone. A daily close above $72 would offer firmer evidence that demand is rebuilding, while the 50-day average at $84.24 remains the next significant resistance.
On the downside, the intraday low on 23 July around $61.50 marks the nearest support. The chart also highlights a demand area between $58 and $60, where buying interest previously halted the sell-off. A sustained break below $58 would extend the pattern of lower lows and leave CRCL open to another leg down.
Momentum signals are showing the first hints of relief. The daily moving average convergence divergence (MACD) line has improved to minus 4.74, now above its signal line at minus 6.10, while the histogram has moved into positive territory at 1.36.
However, with both MACD lines still below zero, the indicator points to an easing in selling pressure rather than a confirmed trend reversal. Unless CRCL can recover $65.68 and then clear the $70–$72 band, ARK’s latest purchase remains a contrarian move against an established downtrend rather than confirmation that Circle shares have found a durable bottom.
This report does not constitute investment advice, and all information is provided for educational purposes only.
