After Circle's share price plunged 70%, executives sold off, putting stocks under pressure again

Circle's internal trading has once again attracted attention: President cashed in US$30.8 million

After CRCL's share price fell more than 70% from its IPO peak, Circle's internal trading has once again become the focus of market attention. President Heath Talbot sold approximately $30.8 million in stock through 10 transactions between June 2025 and July 2026. He still holds 503,000 shares, and the documents show that no open market buying operations have been disclosed. As of July 20, Circle shares were trading at approximately $60.46, and investors are closely watching its earnings performance, competitive landscape and USDC growth.

Circle insiders 'sell-off attracted attention

The SEC Form 4 filing showed that Talbot's total gain from selling shares was approximately $30.77 million. These transactions include stock sales and option exercises, so not all are open market sales. According to the same evaluation report, after the above operations, Talbot still holds approximately 503,000 CRCL shares.

Another independent statistic shows that since the IPO in 2025, Circle executives and directors have conducted a total of 73 sell operations without any buying. The report estimates that the total gain from stock sales by insiders, including CEO Jeremy Allaire, senior managers and board members, is approximately $664 million. The review did not clarify the specific reasons for each insider selling shares.

The Form 4 document only discloses changes in equity, but does not explain executives 'views on the market. Insiders may sell shares for reasons such as tax planning, asset diversification, inheritance arrangements or compensation decisions. This lack of buying operations after stock prices fell provides investors with another signal to watch for.

Trading plan provides background for document disclosure

Circle's first quarter filing shows that Talbot adopted the Rule 10b5 -1 trading plan on March 10, 2026. The plan allows it to sell up to 160,000 Class A shares by December 31 at predetermined prices and formulas. Circle said Talbot adopted the plan during the open trading window and included the required cooling-off period.

A June filing showed that Talbot sold 39,240 shares under the plan for approximately $78.81 to $84.30. After the transaction closed, he held 502,558 shares, including 55,418 direct shares and 447,140 restricted stock units. This position suggests that his equity return is still closely correlated with Circle.

Other Circle executives also adopted the trading plan, including CEO Arlair, chief financial officer Jeremy Fox-Jean, product leader Nikhil Chandhok, and director Sean Neville. While these plans reduce insider control over trading timing, they do not eliminate investors 'attention from these sales.

Competitive pressure affects CRCL valuation

CRCL shares fell 17.5% to $62.63 after Circle was excluded from multiple Russell growth indices and Open Standard launched the Open USD stablecoin. Open USD stablecoins involve more than 140 companies, including Visa, MasterCard, Stripe, BlackRock, Bank of New York Mellon and Coinbase. Its structure shares reserve income with participating companies after deducting management fees.

Analysts believe CRCL is currently trading within a key order block area, which may support a short-term rebound. The chart shows that $69.16 is the first resistance level and may then move towards $84.31. A clear breakthrough in this area may open up space for $94.96. However, if it breaks below the order block area, it may hit support at $49.84.

Mizuho Securities subsequently downgraded its CRCL rating to "underperform" and lowered its target price from $85 to $50. The agency said Open USD could force Circle to share more reserve earnings with distribution partners, squeezing profit margins. JPMorgan also lowered its forecasts for Circle and Coinbase after revising USDC revenue sharing terms related to Hyperliquid balances.

These developments have focused market attention on whether Circle can continue to drive USDC growth while controlling partner costs. Since reserve earnings are an important part of Circle's revenue base, the level of interest rates becomes critical.

Profits and USDC growth determine the next trend

In defending Circle's long-term plans, Talbot pointed out that the USDC has approximately US$73 billion in circulation and has received native support from 34 blockchains. Investors will be watching whether this network translates into higher liquidity, trading activity and continued reserve earnings.

Circle also received final approval from the Office of the Comptroller of the Currency on July 10 to establish the Circle National Trust. The bank will first provide digital asset custody services to Circle and its affiliates, and Circle plans to subsequently add reserve management business. Customer demand and new fee revenue will reflect the extent to which the bank license can expand Circle's business.