BitMine stock remained under pressure as Ethereum ETF withdrawals continued and ETH traded near $2,300. BMNR closed at $22.05 on Oct. 28, down substantially from its reported September peak.
The decline increased attention on BitMine’s cryptocurrency treasury and staking revenue. Meanwhile, technical indicators raised the possibility of another retreat toward $20.
Circle Internet Group’s Published Modest Growth
CRCL stock wavered after the company published its financial results, which showed that its revenue growth continued to moderate amid the crypto winter.
Its revenue rose by 17% to $865 million from a year earlier, helped by the 8% increase in the USDC in circulation. The company’s profit rose by 5% to $226 million, while its nine-month revenue rose to $2.26 billion.
In addition to this, the company’s profitability improved during the quarter, reaching $226 million. This profit growth was driven by its modest growth and its expenses, which rose to $245 million.
Circle expects that its revenue growth will continue, driven by the growing USDC momentum and Arc, the blockchain network it launched a few months ago. It expects to make money from Arc through staking rewards, token sales, and ecosystem incentives. Also, the company plans to make money by holding 2.5 billion ARC tokens, which is 25% of the total.
Circle believes that its annual revenue in the “other segment” will be between $310 million and $330 million, with the RLDC margin being between 41.7% and 43.7%.
Circle is Facing Major Challenges
Despite the optimistic outlook, Circle Internet faces some challenges ahead. One of these is the fact that USDC growth has stagnated in the past few months. Data compiled by CoinMarketCap shows that the USDC in circulation has dropped to $70.6 billion from the year-to-date high of $80 billion. This amount is also much lower than the third-quarter average of $73 billion.
The amount of USDC in circulation is important because of its business model, which involves issuing the stablecoin and then making money by investing in government bonds. As a result, its revenue is usually affected if the USDC in circulation drops.
In most cases, the amount of USDC in circulation depends on the prevailing market conditions. The circulation rises whenever there is a crypto market rally and then drops when there is a crypto winter.
Unfortunately, there are signs that the recovery experienced a few months ago has stalled, with Bitcoin falling into a correction.
The other possible challenge is that US bond yields have started falling. Its benchmark three-month yield has dropped to 4.12% from the year-to-date high of 4.281%. A combination of low bond yields and falling USDC in circulation means that its revenue growth will be under pressure.
Most importantly, Arc Blockchain is facing challenges as competition in the industry rises. DeFi Llama data shows that the total value locked (TVL) in the network has dropped modestly in the past few weeks.
Circle Stock Price Technical Analysis
The daily chart shows that the CRCL stock has retreated in the past few months, falling from a high of $103.25 on September 3 to the current $73. It has formed a descending channel and moved below the 50-day Exponential Moving Average (EMA). Dropping below that average is a sign that bearish momentum continues.
On the positive side, the channel is part of the bullish flag pattern, which normally leads to a strong breakout. If this happens, the next important level to watch will be at $82.70. This view will be confirmed if the price moves above the upper side of the descending channel.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
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