- Circle stock rose by 13% on Monday amid the ongoing CLARITY Act buzz.
- The total USDC transaction volume jumped to $7 trillion in the last 30 days.
- CRCL is now entering the third phase of the Elliot Wave pattern.
Circle stock price jumped by over 13% on Monday as hopes that the Senate will pass the CLARITY Act in the coming months. CRCL also soared as USDC volume surged, crossing the $7 trillion milestone. It rose to $98.70, and Elliot Wave points to further gains in the coming months.
Circle Stock Price Jumps Amid CLARITY Act Buzz
CRCL jumped sharply as investors predicted that the Senate Banking Committee would vote for the CLARITY Act in the coming weeks despite major headwinds.
The committee has been deliberating on the bill, with the most significant challenge being stablecoin yield. In this, banks and credit unions have warned that allowing companies like Coinbase and Kraken to pay rewards on stablecoin deposits will lead to capital outflows from their institutions.
Their argument is that such a move will reduce the amount of money they have to lend to their customers, affecting their businesses. In a recent report, the White House concluded that these fears are overblown.
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Data from Polymarket and Kalshi show that the odds of the CLARITY Act passing soon have jumped substantially in the past few days. Such a move would be bullish for Circle, the biggest publicly traded stablecoin company in the US.
To a large extent, Circle’s business will not be affected by the CLARITY Act because of how it works. Circle makes money by investing its customers’ deposits into short-term government bonds. Its revenue does well when the USDC and EURC supply jumps, and bond yields are elevated.
Data shows that demand for the USDC stablecoin is rising. Circle has minted USDC tokens worth over $10 billion in the last 30 days, bringing the total supply to over $80 billion. Most notably, the monthly volume of USDC supply has jumped to over $7 trillion, far higher than that of other stablecoins.
CRCL Stock Price Technical Analysis
The daily chart shows that the Circle stock price is sending bullish signals today. It has formed a bullish engulfing pattern, which is a sign that the recent sell-off is nearing its end.
A closer look shows that it may now be starting the third phase of the Elliot Wave pattern, which is usually the most bullish. As such, if this is correct, the coin will likely continue rising as bulls target the year-to-date high of $175, which is about 36% above the current level.
A surge above that level will signal more gains, potentially to the psychological $200 level, which aligns with the 61.8% Fibonacci Retracement. This target is about 107% above the current level.
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