Will MSTR, COIN, and CRCL Stocks Tumble Amid U.S. Government Shutdown?
Following the partial U.S. government shutdown on January 31, 2026, crypto stocks experienced a downturn as the Department of Homeland Security faced funding challenges. This event coincided with a decline in Bitcoin, impacting stocks such as MSTR, COIN, and CRCL.
Focus on Crypto Stocks: MSTR, COIN, and CRCL
Trading patterns reflect volatility, not disorderly selling, with these stocks closely linked to Bitcoin's movements. MSTR traded at $149.71 on January 31, fluctuating between $137.57 and $151.09. Analyst Lourenço VS suggests MSTR might soon present a buying opportunity.
Aksel Kibar, a Chartered Market Technician, identified a long-term topping pattern in MSTR's weekly chart, predicting a potential drop to $120.
CRCL was at $63.93, down 5.36%, with prices ranging from $61.9 to $67.5. Analyst BRUH warned of a possible all-time low. Despite this, Compass Point upgraded Circle Internet Group's stock from Sell to Neutral, adjusting its target to $60. Mizuho Securities USA LLC previously raised Circle's rating due to increased USDC usage on Polymarket.
COIN closed at $194.74, down 2.23%, fluctuating between $191 and $199. Analyst BRUH noted a cycle forming in the $140-$160 range. Piper Sandler lowered COIN's target to $270 from $350.
Potential Decline Amid Shutdown
These crypto stocks are at risk due to Bitcoin's price drop to $80,000 as the U.S. government shutdown began. The Senate has passed a funding deal, suggesting the shutdown may be brief.
Bitcoin and related stocks face bearish sentiment due to U.S. President Donald Trump's nomination of Kevin Warsh as the next Federal Reserve Chair, raising concerns over interest rates. Trump indicated Warsh would lower rates independently.
MSTR may face losses due to Michael Saylor's Strategy's exposure to Bitcoin, now below $80,000 and nearing Strategy's average buy price of $76,000.