PANews reported on January 30, according to CoinDesk, January 30, 2026. Wall Street analyst and Circle stock’s biggest bear, Ed Engel, upgraded his rating from “sell” to “neutral,” but lowered his target price from $75 to $60, warning that the stock is still highly tied to the cryptocurrency market and is moving like a “roller coaster.”
Engel pointed out that Circle’s stock price performance is increasingly in sync with Ethereum and the broader crypto market cycle, and that more than 75% of the supply of USDC, the stablecoin behind it, is used for high-risk activities in DeFi or exchanges, which makes the correlation between USDC and Ethereum prices as high as 0.66, and this trend may continue until mid-2026. Therefore, despite being a “stablecoin” issuer, Circle has essentially become a cyclical stock and is currently valued high. Potential upside catalysts include the passage of the CLARITY Act (with a 60% probability) and the trend of tokenization of U.S. assets in DeFi, which could provide a clearer regulatory basis for USDC’s growth and reduce its reliance on overall crypto sentiment. Engel believes that corporate revenue is still closely tied to speculation in the short term, and it may take several years to truly decouple from the crypto cycle.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitwise: Circle's Valuation Could Reach $75 Billion by 2030, Analysts Support Stock Price
Despite Circle's stock price falling approximately 20% recently, institutions remain optimistic about its prospects, with valuations projected to reach $75 billion by 2030. Analysts believe the expansion of the stablecoin market and Circle's market share will continue to drive growth, and its influence may be constrained by competitors' compliance processes.
BlockBeatNews15m ago
USDC Treasury has newly minted 250 million USDC on the Solana chain
Gate News reported that on March 25, according to Whale Alert monitoring, USDC Treasury newly minted 250 million USDC on the Solana chain.
GateNews1h ago
Institution: Circle Stock Price Plunge May Be Misinterpreted, New Stablecoin Regulations Mainly Target Distribution End
Research firm Bernstein points out that the market misinterpreted the Clarity Act draft, causing Circle's stock price to plummet. The bill restricts stablecoin yield distribution, not issuance, so the impact on Circle's business model is limited. In contrast, a certain CEX needs to restructure its revenue mechanism. In the long term, restricting passive income may benefit Circle in consolidating its market position.
GateNews3h ago
TRX/USDC trading pairs now available on Aerodrome, fueling cross-chain liquidity for TRON's ecosystem
This publication is provided by the client. The text below is a paid press release that is not part of Cointelegraph.com independent editorial content. The text has undergone editorial review to ensure quality and relevance, it may not reflect the views and opinions of Cointelegraph.com. Readers
Cointelegraph3h ago
