Why Are CRCL, COIN Stocks Rising Pre-Market Despite Bitcoin’s Dip, Price Target Cuts?

Cathie Wood's ARK Invest purchased roughly 130,000 additional Circle shares across three ETFs.

• Clear Street lowered its price targets on both Circle and Coinbase ahead of earnings but maintained 'Buy' ratings on both companies.
• Bullish shares outperformed after the company received antitrust approvals for its planned $4.2 billion acquisition of Equiniti.
• Bitcoin outperformed Ethereum, Solana, and XRP amid a broader market decline over the last 24 hours. 

Shares of large-cap crypto-linked stocks edged higher in pre-market trade on Friday, even as Bitcoin (BTC) and most major cryptocurrencies traded lower.

Shares of stablecoin issuer Circle (CRCL) edged higher after Cathie Wood's ARK Invest added more shares of the company across three of its exchange-traded funds.

According to the ARK Invest Tracker, Wood's firm added 92,352 CRCL shares in its flagship ARK Innovation ETF (ARKK), another 26,272 shares in the ARK Next Generation Internet ETF (ARKW), and 11,512 shares in the ARK Fintech Innovation ETF (ARKF), bringing total purchases across the three funds to roughly 130,136 shares on Thursday.

However, Clear Street lowered its price target on Circle to $128 from $ 157 and maintained a ‘Buy’ rating as part of a Q2 earnings preview. CRCL stock gained more than 1% in pre-market trade despite the cut, while retail sentiment on Stocktwits around the company remained in ‘bearish’ territory over the past day. Sentiment around its USDC (USDC) stablecoin was in the ‘neutral’ zone.

Coinbase Trades Higher While Investors Watch CLARITY Act

Coinbase (COIN) also traded higher. The two companies jointly manage USDC, splitting the reserve income the stablecoin generates. COIN stock was up 0.83% in pre-market trade, with retail sentiment trending in the ‘bullish’ zone over the past day.

The Brian Armstrong-led cryptocurrency exchange also saw a price cut from Clear to $225 from $244 with a ‘Buy’ rating. "Weak sentiment and AI trade are taking capital away from crypto," the analyst tells investors in a research note cited by TheFly.

Retail investors of both CRCL and COIN are tracking developments around the CLARITY Act, given how it would impact both their businesses. Earlier this week, in an interview with CNBC, Armstrong stated that Coinbase may consider moving parts of its business outside the U.S. if the CLARITY Act continued to face delays. 

Reports suggest that lawmakers are pushing for the bill to be tabled in the Senate for a vote before the August recess. However, issues like the ethics clause and treatment of stablecoin rewards continue to be sticking points. 

Bullish Gets Antitrust Clearance For Equiniti Deal

Shares of cryptocurrency exchange Bullish (BLSH) saw a larger uptick in early-morning trade after the company received antitrust clearance in the U.S., UK, and Germany for its $4.2 billion acquisition of Equiniti, though the deal remains subject to other approvals and customary closing conditions, with completion targeted for January 2027. 

BLSH stock rose more than 2% in pre-market hours, with retail sentiment climbing to ‘extremely bullish’ from ‘bullish’ territory over the past day.

Bitcoin Holds Up Better Than Altcoins

The overall cryptocurrency market was trading lower in early morning trade on Friday, down 1.9% in the last 24 hours to around $2.3 trillion. Bitcoin’s price fell more than 1% in the last 24 hours, struggling to keep above the $65,000 mark. Retail sentiment around the apex cryptocurrency on Stockwits remained in ‘bullish’ territory over the past day. 

Meanwhile, Solana (SOL), Ethereum (ETH), and Ripple’s XRP (XRP) led losses in the cryptocurrency market. SOL’s price dropped over 3% to around $75.30, while ETH’s price fell 2.4% to $1,880, and XRP’s price slid 2.4% to around $1.10. 

Despite the broader crypto weakness, Bitcoin treasury companies traded higher. Strategy (MSTR), the largest corporate holder of Bitcoin, and Bitmine Immersion Technologies (BMNR), the largest Ethereum treasury company, both gained in early-morning trading.

MSTR’s stock and BMNR’s shares both rose around 0.6%. Retail sentiment on Stockwits around MSTR remained in ‘neutral’ territory over the past day, while sentiment around BMNR slipped to ‘bullish’ from ‘extremely bullish’ territory. 

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