Shares of Circle (CRCL) declined by 8.23% to $198.31 following a downgrade by Compass Point from 'neutral' to 'sell'. Analysts cited heightened competition in the stablecoin market, the potential impact of Federal rate cuts, and decreasing retail interest as key factors in their assessment. They predict that new entrants, including fintech companies and banks, will intensify competition, especially after the recent signing of the GENIUS Act on July 18, which aims to clarify the regulatory environment for stablecoins. The report sets a price target of $130 for CRCL, estimating that earnings may not justify current stock valuations. This downgrade follows a significant drop of 34% from the peak price of $298.99 observed on June 23, highlighting ongoing volatility and investor hesitancy in the cryptocurrency sector.

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