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Circle (CRCL) nearly 50% higher in two sessions since earnings results

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Circle stock price (left) and ratio of stocks short sold (right) (10x Research)

Circle (CRCL), issuer of the USDC stablecoin, continues to surge, now 45% higher in less than two sessions following its Wednesday fourth quarter earnings report.

The move snapped what had been a brutal 80% drawdown from record highs hit last year.

While the company delivered strong growth in USDC supply, the stock’s outsized reaction was driven more by crowded short bets heading into the print than by strong financials, analysts suggested.

“The magnitude of the move was not driven purely by the headline numbers. The real catalyst was positioning,” said Markus Thielen, founder of 10x Research.

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Hedge funds had built sizable bearish exposure into the report, according to his data. That setup pointed to a “high-probability short squeeze rather than a fundamental re-rating,” Thielen added.

Circle stock price (left) and ratio of stocks short sold (right) (10x Research)

Circle stock price (left) and ratio of stocks short sold (right) (10x Research)

He estimated that hedge funds had lost roughly $500 million in a single day on shorts as shares squeezed higher.

Tough business

While Circle’s report produced positive headline numbers, digging deeper into the data shows that the profitability of the business slipped despite growing stablecoin demand.

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On the fundamentals, Circle’s flagship USDC stablecoin grew to $75.3 billion in circulation, up 72% year over year and outpacing rival Tether’s USDT growth, Harvey Li, founder of Tokenization Insight, noted in a report.

Revenue from reserve income — primarily U.S. government debt backing USDC — rose 58% to $2.64 billion as benchmark interest rates compressed over the past year. But distribution costs climbed even faster, up 66% to $1.66 billion, underscoring the expense of incentivizing partners and platforms to expand adoption.

Despite surging circulation, Circle swung from a $156 million net profit in 2024 to a $70 million loss, Li pointed out.

“Stablecoin may be scaling; stablecoin issuance is a tough business,” Li said.

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Beating expectations

Still, Circle topped analyst forecasts.

Japanese investment bank Mizuho raised its price target on Circle to $90 from $77 after the stronger-than-expected fourth quarter, citing a boost from prediction markets and growing optimism around “agentic commerce,” in which autonomous AI agents transact using Circle’s USDC stablecoin.

The firm reiterated its neutral rating on the stock, warning that lower interest rates could still weigh on reserve income.

Analysts Dan Dolev and Alexander Jenkins said Circle’s results topped expectations on both revenue and profit, easing investor concerns after a period of pessimism. Management highlighted prediction and betting platforms, particularly Polymarket, as meaningful drivers of recent USDC growth, pointing to their high-frequency transaction flows and near-term utility.

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The analysts noted that company executives also underscored USDC’s emerging role in agentic commerce, describing the stablecoin as a potential default currency for AI agents transacting across digital marketplaces. A growing number of products are being built on USDC and connected to Circle’s network, with trading and prediction platforms serving as prominent examples of high-velocity use cases.

The bank now forecasts average USDC in circulation of roughly 123 million in 2027, modeling reserve income of about $3.7 billion and EBITDA of $916 million that year, assuming rate cuts in line with consensus expectations. Applying a 24x EBITDA multiple, a premium to peers such as Visa (V), Mastercard (MA), Coinbase (COIN) and Robinhood (HOOD), the analysts arrived at their new $90 price target.

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Crypto World

Ethereum Eyes 25% Rally as Top ETH Whales Return to ‘Profitable State’

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Ethereum Eyes 25% Rally as Top ETH Whales Return to 'Profitable State'

Ethereum’s native token, Ether (ETH), may rise by around 25% in the coming months as its richest whale group becomes profitable for the first time since early February.

Key takeaways:

  • ETH gained 25% in three months and 50% in six months on average after top whales returned to profit in past cycles.

  • Ether could rally above $2,750 by June if the on-chain whale metric signal plays out.

Whale metric signals ETH is bottoming already

The unrealized profit ratio of wallets holding more than 100,000 ETH has flipped back above zero, according to data resource CryptoQuant. In other words, this whale cohort is no longer sitting on aggregate paper losses.

ETH whales unrealized profit ratio (100K+). Source: CryptoQuant

In the past, similar transitions to a “profitable state marked the starting point of an uptrend,” said on-chain analyst CW.

ETH delivered nearly 25% returns on average three months after the whale ratio flipped to positive. Similarly, its price gained roughly 50% after six months and 300% after a year into the signal.

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The price behavior suggests that once top ETH whales return to aggregate profit, they face less pressure to sell defensively. At the same time, the shift can strengthen broader market confidence by signaling renewed conviction among the richest ETH holders.

ETH may head toward the $2,750 area by June and to over $3,200 by September if the historical post-signal pattern holds.

Related: Early Ethereum whale rebuilds stack with $19.5M in ETH buys

Still, the whale ratio metric is not flawless. In 2018, for instance, ETH dropped 17.5% in the month after a similar flip and eventually tumbled nearly 70%.

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Onchain data caps Ether’s upside at $2,640

Another on-chain signal is reinforcing Ethereum’s recovery case.

Glassnode data shows ETH rebounding from its lowest MVRV deviation band (blue), a setup similar to Q2 2022 and Q2 2025, when price recovered from undervalued levels and climbed back above realized price.

ETH MVRV extreme deviation pricing bands. Source: Glassnode

At current rates, ETH remains below its realized price (purple) at $2,353, which remains the first key recovery level. A break above that threshold could open the door toward the -0.5 sigma band (teal) near $2,640.

On the downside, failure to reclaim realized price could keep ETH exposed to a retest of the lowest deviation band near $1,651.

Ethereum’s technicals reiterate rally above $2,600

From a technical perspective, ETH has broken above its ascending triangle pattern and is now pulling back toward the former resistance trendline.

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Such retests are common after breakouts, as markets often revisit the breakout level to confirm it has flipped into new support.

ETH/USD daily chart. Source: TradingView

Ether could resume its recovery toward the triangle’s measured upside target at around $2,625 or higher if the upper trendline holds as support.

That level also sits within the broader on-chain recovery range outlined by Glassnode’s MVRV bands, adding confluence to the bullish setup.

A failed retest, on the other hand, would weaken the breakout structure and risk sending ETH back toward the lower support zone near $1,950-$2,000.