CRCL Leads Crypto Stocks Lower After Morgan Stanley Downgrade Adds To Bitcoin, CLARITY Act Pressure

Morgan Stanley downgraded CRCL stock to ‘Underweight’ from ‘Equal Weight’ and slashed its price target by 60%.

• Crypto-linked equities traded lower pre-market following Bitcoin’s drop to under $63,000.
• The crypto market also faced uncertainty with the CLARITY Act nowhere on the Senate’s calendar for this week, ahead of the chamber's scheduled recess starting August 10.
• CRCL led the decline in large-cap crypto equities, with BMNR, MSTR, and COIN shares also trading in the red pre-market.

Shares of Circle Internet (CRCL) fell in early morning trade on Monday after Morgan Stanley downgraded the stock, adding to pressure from a broader selloff in crypto equities as Bitcoin (BTC) slipped below $63,000 and the CLARITY Act remained stalled in Congress.

CRCL stock fell over 5% in pre-market trade, leading losses among crypto-linked large caps. On Stocktwits, retail sentiment around the USDC (USDC) stablecoin issuer trended in ‘bearish’ territory over the past day. Sentiment around USDC also remained in the ‘bearish’ zone.

Meanwhile, Bitcoin’s price fell 0.8% in the last 24 hours to below $63,000. Retail sentiment around the apex cryptocurrency on Stocktwits also trended in ‘bearish’ territory over the past day.