Circle Internet Corp.'s stock plummeted 5% intraday on Friday, reflecting a sharp decline in the cryptocurrency-related sector.
The drop aligns with a broader selloff in digital assets, driven by speculation that the next chair of the U.S. Federal Reserve might tighten monetary policy. Market concerns center on potential reductions in the Fed's balance sheet, which could withdraw liquidity that has historically supported speculative assets like cryptocurrencies. Additionally, broader market jitters, including fears around AI exuberance highlighted by a significant drop in a major tech stock, contributed to the risk-off sentiment affecting crypto-linked companies.
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