Circle Internet Corp. (CRCL) shares tumbled 5.13% in pre-market trading on Monday, even after TD Cowen initiated coverage with a Buy rating and an $82 price target. The decline comes amid a broader risk-off sentiment in the cryptocurrency market, as long-term Bitcoin holders have been dumping their holdings and Bitcoin ETFs snapped a three-week inflow streak.

The sell-off appears to be driven by macro-level risk factors affecting the crypto space. According to market analysts, long-term Bitcoin holders have been transferring large sums for two consecutive days, with some moving coins to exchanges—a potential signal of intention to sell. Additionally, Bitcoin spot ETFs recorded net outflows of $61.53 million last week, ending three consecutive weeks of inflows, which further dampened investor sentiment.

While Circle Internet, a stablecoin issuer and crypto infrastructure company, received a bullish analyst initiation, the broader market panic overshadowed the positive news. The ongoing macro risks—including the Federal Reserve’s split vote on interest rate cuts, Middle East tensions, and yen carry trade unwinding—have amplified the sensitivity of Bitcoin’s position structure, leading to a flight to safety and dragging down related crypto stocks like Circle.