BIT: Circle Falls 28%, Valuation Re-enters Watch Zone

Odaily News, BIT released a chart today stating that in their report on February 25th, they noted that when Circle's stock price fell to around $63, short positions were crowded, and covering these positions was expected to drive a rapid rebound in the stock price. A few weeks later, the stock once climbed to $125. In the daily report on March 16th, they assessed that this short squeeze rally had largely played out. Since then, the stock price has cumulatively fallen by about 28%, confirming this judgment.

The CLARITY Act has seen key recent developments: a compromise draft proposes to restrict platforms from providing yields on idle stablecoin holdings. For Circle, the expansion space for some interest-bearing products may narrow; however, once the regulatory framework is finalized, USDC's compliant positioning will become clearer. The plan has not yet been finalized, coupled with slowing stablecoin growth and low market activity, leading to a lack of clear short-term catalysts. According to their fundamental framework, as the stock price gradually approaches below $80, Circle's valuation has re-entered a range worthy of attention.