Coinbase Stock Falls Amid Selloff, Why This Crypto Stock Is Going Up?

Coinbase stock have lagged this week as cryptocurrency markets weakened. On June 17, Bitcoin slid below $105,000.

Crypto-related equities sold off, dragging Coinbase stock down roughly 3% according to Google Finance data.

Coinbase Stock Loses Momentum

The pullback follows a disappointing earnings report: Reuters noted that Coinbase’s first-quarter profit plunged. Its operating costs spiked (expenses were up 51%). That sent the stock about 3% lower in after-hours trading.

Investors point to broad risk-off sentiment from macro uncertainty and volatile markets, and softer trading volumes as headwinds.

Crypto exchange trading activity has waned. For example, Coinbase’s volumes declined sharply in recent months as Bitcoin’s price oscillated, weighing on transaction revenue.

On top of this, regulatory uncertainty persists. Although a recent SEC suit against Coinbase was dismissed, a win for the company, U.S. lawmakers have yet to establish clear rules for crypto exchanges.

In sum, Coinbase stock remains under pressure, trading near recent lows amid the broader market selloff.

Circle Stock Rises on Stablecoin Policy Optimism

In contrast to the recent dip in Coinbase stock, Circle Internet Group (NYSE: CRCL) shares have surged since its early June IPO.

Circle’s stock opened at $69 and closed its debut session at $83.23 – about 168% above the $31 offer price.

The rally continued: Circle closed Tuesday, June 17, at $151.06, more than quadrupling its initial valuation. Early Wednesday (June 18) in premarket trading, Circle stock was up roughly 3%, driven by investor enthusiasm.

A key catalyst is Washington’s stablecoin legislation. On June 17, the U.S. Senate passed the so-called GENIUS Act, a bipartisan bill to regulate dollar-backed cryptocurrencies.

The measure is widely seen as a win for stablecoin issuers: the GENIUS Act is “a bill designed to regulate stablecoin issuers like Circle”.

Circle’s CEO, Jeremy Allaire, promptly hailed the outcome as “genius” legislation. In short, investors are betting that clear stablecoin rules will benefit Circle’s business, which issues the USD Coin stablecoin, helping to explain why its stock has rallied.

The GENIUS Act: Stablecoin Regulatory Framework

The GENIUS Act – formally the Guiding and Establishing National Innovation for US Stablecoins Act – is a landmark piece of legislation.

The Senate approved it 68-30 on June 17, after which it goes to the Republican-led House and, if passed, to the President’s desk. The bill would impose the first federal framework for U.S. dollar stablecoins.

Under the Act, all payment stablecoins must be fully backed by liquid reserves (such as cash or short-term Treasury bills), and issuers would have to disclose their reserve composition monthly.

Supporters call it “a watershed moment” that finally provides regulatory clarity for this asset class. The industry has long lobbied for such a framework, arguing that clear rules will allow stablecoins to scale (e.g., for instant payments).

Circle and other issuers stand to benefit: with regulators certifying that stablecoins are fully collateralized, investor trust and institutional adoption of coins like USDC could rise.

As one analyst noted, “it establishes, for the first time, a regulatory regime for stablecoins” – a backdrop that has boosted optimism about Circle’s long-term prospects.

Diverging Investor Sentiment on Circle & Coinbase Stock

Market reactions underscore how differently investors view the two companies.

Coinbase is treated mainly as a barometer of the crypto trading cycle, and its stock has been tepid; for example, it closed around $261 on June 17, roughly flat in 2025 and well below its post-IPO highs.

By contrast, Circle has been cast as a stablecoin-pedigree growth story. Circle’s share price is up roughly 380% from the IPO price (from $31 to about $149).

In practical terms, Circle’s stock has doubled within days of listing, while Coinbase’s has struggled to rally.

Analysts note that this reflects investor bets: Circle appears to be riding the wave of favorable stablecoin policy, whereas Coinbase is exposed to the vagaries of crypto volume and broader stock-market swings.