Circle Internet Corp. (CRCL) shares plummeted 5.07% during intraday trading on Friday, reflecting a broader downturn in cryptocurrency-related stocks.
The decline comes as Bitcoin fell below $67,000, touching a more than two-week low. Traders assumed a defensive posture following the largest expiry of Bitcoin options this year, with roughly $14 billion worth of contracts expiring on Friday. Market participants appear to be anticipating a prolonged war, potential stagflation, and "forced rate hikes," leading to increased bearish sentiment across the crypto sector.
The heightened risk aversion is evident in derivatives markets, where the put/call ratio over the past 24 hours stood at 1.3, indicating greater demand for downside protection heading into the weekend. Bitcoin's drop dragged down shares of major crypto companies, creating a negative ripple effect throughout the industry.
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