Circle's stock, trading as CRCL, skyrocketed on its second day, approaching four times its IPO price of $31, hitting a high of $123.51. This surge marks a significant milestone, as the stock outperformed expectations typical of tech IPOs. Circle closed its IPO with a valuation of $18.4 billion, raising nearly $1.1 billion. Its achievement coincides with Bitcoin's rebound, trading back above $105,000. Analysts advise caution to retail investors considering CRCL shares, highlighting the typical volatility post-IPO influenced by lockup periods. The enthusiasm may be tempered by concerns over Circle's revenue model, which heavily depends on interest from cash backing its stablecoins, posing risks as interest rates shift. Meanwhile, the new GENIUS Act, aimed at regulating stablecoin issuers, gained traction in the Senate, potentially influencing the market landscape for stablecoins significantly.

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