Analysis: The situation in Iran and short squeezes jointly led to the recent rise in CRCL

Odaily reported that Circle (CRCL) stock price rose 9.7% on Monday, with a cumulative increase of 86% over the past month. Analysts stated that the escalation of the situation in Iran has caused crude oil prices to rise by about 35% since February 28, intensifying inflation expectations and potentially forcing the Federal Reserve to postpone interest rate cuts. As stablecoin issuers generate returns by investing in US dollars, a high-interest-rate environment is typically favorable for them.

Furthermore, Markus Thielen, founder of 10x Research, indicated that this significant surge was also influenced by trader positions. Due to hedge funds accumulating substantial short positions before the earnings report, the company's robust fourth-quarter performance triggered a high-probability short squeeze. Currently, short positions in Circle account for approximately 13% of the circulating shares. (CoinDesk)