Cathie Wood’s ARK Invest has purchased 220,012 Circle Internet Group shares worth about $13.9 million as CRCL stock has fallen below $64 and every major daily moving average.
Summary
- ARK Invest purchased 220,012 Circle shares worth about $13.9 million during CRCL’s decline.
- CLARITY Act progress could improve regulatory certainty for Circle and other digital-asset companies.
- CRCL remains below major moving averages despite an improving daily MACD signal.
According to ARK Invest’s trading disclosure, the firm divided the purchase among three actively managed exchange-traded funds. The ARK Innovation ETF acquired 159,517 shares, while the ARK Next Generation Internet ETF and ARK Fintech Innovation ETF added 42,400 and 18,095 shares, respectively.
The transaction extended ARK’s buying during a steep decline in Circle’s market value. CRCL traded at $63.38 on July 23 after falling 4.20%, with the session producing a high of $65.41 and a low of $61.49, according to the daily TradingView chart.
Circle’s stock has struggled as weaker sentiment toward crypto-linked companies has reduced investors’ willingness to hold volatile digital-asset equities. Circle operates USDC, a dollar-backed stablecoin used across exchanges, payment services and decentralized finance applications.
Wood’s purchase suggests ARK remains willing to increase its exposure during the decline, although the investment manager has not guaranteed that CRCL has reached a bottom. ARK describes its investment approach as focused on companies tied to disruptive technologies and long-term growth, a strategy that can leave its funds exposed to sharp price swings.
Earlier this week, ARK used a similar approach with another high-volatility holding. As reported by crypto.news, four ARK funds purchased 170,634 SpaceX shares worth about $20.45 million while the stock traded below its $135 initial public offering price.
SpaceX then climbed 7.10% to $128.37, handing ARK an early unrealized profit on the new position, according to the crypto.news report. Although SpaceX and Circle operate in different industries, the transactions show ARK adding to selected companies after large declines rather than waiting for their charts to confirm a recovery.
CLARITY Act progress offers Circle a regulatory catalyst
Circle’s outlook has also become tied to negotiations over the Digital Asset Market Clarity Act, which could establish federal rules for digital-asset markets and divide regulatory responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Senator Cynthia Lummis released an updated version of the legislation on July 22, combining texts advanced by the Senate Banking and Agriculture committees. In her announcement, Lummis described the coming weeks as a critical window for reaching an agreement that could allow the bill to become law.
Senate Banking Committee Chairman Tim Scott and Senate Agriculture Committee Chairman John Boozman have backed the revised framework. According to Lummis’ official release, Boozman argued that the proposal would give consumers, companies and markets clearer rules while adding safeguards for digital-asset activity.
For Circle, passage could reduce uncertainty surrounding businesses that issue stablecoins or provide related financial services. Such an outcome may make it easier for institutions to assess USDC-based products, but the proposal still requires enough Senate support and final approval before its provisions can take effect.
The latest draft faces political obstacles despite Republican support. Some Democrats have reportedly objected to the proposal’s treatment of crypto-related conflicts involving government officials, an issue that could complicate efforts to secure the 60 votes generally needed to advance legislation in the Senate.
CRCL remains bearish despite improving MACD momentum
CRCL’s daily chart shows that sellers still control the main trend even though one momentum indicator has started to improve. At $63.38, the stock sits below its 20-day simple moving average at $65.68, while the 50-day average is much higher at $84.24.
Longer-term resistance remains even further away. The chart places the 100-day moving average at $95.02 and the 200-day average at $92.14, leaving CRCL below all four trend indicators after a decline from its May peak near $140.
A recent rebound reached the $70–$72 region but failed to hold, according to the chart. Buyers would first need to recover the 20-day average at $65.68 before challenging that recent rejection zone. A daily close above $72 would provide stronger evidence that demand is returning, while the 50-day average at $84.24 would remain the next major obstacle.
On the downside, the July 23 intraday low places immediate support near $61.50. The chart also shows a demand area between $58 and $60, where buyers previously interrupted the decline. A sustained move below $58 would extend the sequence of lower lows and leave CRCL vulnerable to another leg down.
Momentum has offered one early sign of relief. The daily moving average convergence divergence line has risen to minus 4.74, above its signal line at minus 6.10, while the histogram has turned positive at 1.36.
Because both MACD lines remain below zero, the chart indicates that selling momentum has eased without confirming a trend reversal. Until CRCL recovers $65.68 and then $70–$72, ARK’s latest purchase remains a bet against an established downtrend rather than confirmation that Circle stock has formed a durable bottom.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.