CRCL Stock Eyes PCE Inflation After 22% Weekly Rally

Circle Internet Group (CRCL) stock is in focus as investors await fresh U.S. PCE inflation data following a sharp rally in the stablecoin issuer’s shares.

CRCL closed August 25 at $92.02, up 4.90% for the session and roughly 22% over the past week. However, shares slipped 0.62% to $91.48 in premarket trading as traders took profits ahead of the inflation report.

The broader crypto market also cooled, falling 0.88% to $2.64 trillion. Bitcoin traded near $78,600, Ethereum remained around $2,400, and XRP hovered near $1.42. Despite the pullback, total crypto valuations have risen nearly 20% over the past month, while market sentiment recently reached extreme greed.

The Federal Reserve’s preferred inflation gauge could determine CRCL stock’s next move. Headline PCE inflation is expected to ease to 3.6% from 3.7%, while core PCE is forecast to remain at 3.3%.

A softer-than-expected reading could strengthen expectations for lower interest rates, potentially supporting cryptocurrencies and crypto-related stocks such as Circle. Conversely, hotter inflation could weaken rate-cut expectations and pressure risk assets ahead of Friday’s Jackson Hole event.

Circle’s underlying business growth continues to support the bullish CRCL outlook. USDC average circulation increased 25%, while the company reported $48 million in net income and $143 million in adjusted EBITDA. USDC transactions have surged 209% this year, with Circle accounting for about 62% of stablecoin transaction volume.

Investors are also watching Circle’s Arc blockchain, whose mainnet is scheduled to launch on September 16. Circle Payments Network recorded $14.7 billion in annualized volume during the second quarter.

From a technical perspective, CRCL stock has near-term support around $90.60 to $91.00. Holding this zone could allow another test of $92, followed by resistance at $93, $94 and $95. Strong risk appetite could eventually bring the $95-$100 range into focus.

A break below $90.60, however, could weaken the bullish setup and expose CRCL to a deeper correction. For now, the outlook remains cautiously bullish while shares hold above key support.