10x Research: Circle Soars Due to Short Squeeze; Subsequent Market Trading Logic Will Still Return to Fundamentals

Odaily News 10x Research posted an analysis on X platform, pointing out that the core driver of Circle's stock price surge yesterday was not the earnings report data itself, but rather the market positioning structure. This structure was more likely to trigger a high-probability short-covering rally rather than a simple fundamental revaluation. It is reported that a hedge fund had established a large short position before the earnings release. However, as Circle's stock price soared in a single day, triggering a severe short squeeze, the hedge fund incurred a loss of approximately $500 million in one day. 10x Research added that this round of intense volatility not only affected Circle but also spilled over to Coinbase and Bitcoin. Although Circle was a clear bullish target, the magnitude of the overall market move was primarily driven by an imbalance in the overall positioning structure of the crypto market. New market catalysts may be imminent and could reshape the market narrative, after which the market's trading logic may revert back to fundamentals.