Downgrades Circle: Pullback to $180 Again After the Party?

Circle is down 7% after investment firm Compass Point Research downgraded its rating from "Neutral" to "Sell." Analysts noted that if the Federal Reserve cuts interest rates, Circle’s earnings are expected to decline, which could impact its future profitability. --------- After the party, comeback of pullback again? Do you agree with Compass Point Research's downgrade of Circle? Why or why not? How might a potential Fed rate cut impact other fintech or crypto-related companies besides Circle?

avatarSpiders
07-28 15:58

Downgrades Circle: Pullback to $180 Again After the Party?

Circle Internet Financial Corp. (CRCL) slipped after investment firm Compass Point Research downgraded its rating from Neutral to Sell. Analysts noted that if the Federal Reserve cuts interest rates, Circle’s earnings are expected to decline, which could impact its future profitability. Circle Internet Corp. (CRCL) That was enough to spook some investors. The party might be cooling down—again. But here’s the thing: Wall Street downgrades don’t drive my decisions. Why I Don’t Chase Analyst Ratings Let me be clear—I’m not claiming I know more than the analysts. They have research tools and financial models. But personally, I find many analyst upgrades and downgrades are reactive rather than predictive. They often follow the trend instead of getting ahead of it. A downgrade after a run-up or
Downgrades Circle: Pullback to $180 Again After the Party?
avatarhello7
07-25
$Circle Internet Corp.(CRCL)$ there is more catalyst coming in the recent future. 1. National trust bank application result 2. Genius act detailed groundwork completion by lawmakers 3. Collaboration and partnership with others such as, visa and master Downsides: Fed cut rates.  But if crcl can prove that they are expanding their growth in non-interest revenue. Rate cut could be a boost too
$Circle Internet Corp.(CRCL)$ not sure. Not a stock I'd invest in. Be cautious and trade at your own risk and discretion. @BABY SPACEROCK  @LULU ROCKET  
$Circle Internet Corp.(CRCL)$ pullback are all inevitable. Not sure what to say on this stock but it's not something on my radar, not my cup of tea. Anyone wanna trade crypto and it's derivatives must always be able to stomach volatility or stay away. It's that simple. Plus, this freshly IPO-ed stock has yet to prove its worth with reliable ER and forward PE etc. So it's not something I'd look to invest. Swing trade maybe. But not something for long term. @LULU ROCKET  @PhoenixBee  @Aqa  @JiaDeName  
$Circle Internet Corp.(CRCL)$ The lock-up period for Circle (CRCL) stock, which went public via IPO, is 180 days. This means insiders, such as company executives, employees, and early investors, are restricted from selling their shares for six months after the IPO. The lock-up period for Circle is expected to expire around early December 2025.  Early investors are probably getting the jitters with stock downgrades, panic sells, questionable sustainability and upward trajectory. And once the lock up period is up, lore mayhem will follow. Not a stock I'd invest in for now, but for those who foresee aggressive expansion and improvements that Circle can bring in the Crypto space, then adding on the dips and being patient could well pay off.
$Circle Internet Corp.(CRCL)$ pullback further for now as lock in period for the stock is fast approaching. People go into panic mode and start dumping on one another.
avatar1PC
07-23
$Circle Internet Corp.(CRCL)$ "Circle 's downgrade [OMG] ? " Harsh [Speechless]  , but not baseless. Compass Point flagged valuation stretch & margin pressure - & they're not wrong. CRCL 's 53B cap vs. $155M net income is lofty, especially if Fed cuts trim Treasury yields 📉. Since Circle earns heavily from interest on USDC reserve, a 25bps cut could shave hundreds of millions off earnings. That's real Impact. But I'm not jumping ship 🚢. GENIUS Act gives Circle first - mover regulatory clarity, & distribution expansion could offset margin compression. As for fintech peers? Rate cuts hit anyone monetizing float - Think PayPal, Robinhood, even Coinbase. But they also boost liquidity & risk appetite, which could li
avatarKKLEE
07-23
$Circle Internet Corp.(CRCL)$ After a red-hot run that saw Circle rocket back into the spotlight, the mood has shifted — and fast. With several brokerages issuing fresh downgrades, investors are now asking if the rally is over, and whether the stock could retreat back to $180 or lower. What Sparked the Downgrades? Valuation concerns: After Circle surged on stablecoin momentum and regulatory optimism, analysts now warn that prices may have gotten ahead of fundamentals. Profit-taking pressure: With early backers and high-profile funds taking profits, the selloff may not just be technical — it could be strategic. License hype priced in? Some believe the recent excitement around banking license applications and regulatory clarity has already been fact
$Circle Internet Corp.(CRCL)$ The downgrade of Circle by Compass Point Research from “Neutral” to “Sell” is rooted in a logical and data-driven concern: interest rate sensitivity. While not universally conclusive, the rationale does carry weight—especially when one examines the business model of Circle and similar fintech/crypto-related firms. --- Do I agree with Compass Point Research’s downgrade of Circle? Yes, to an extent. The downgrade appears justifiable if your investment thesis for Circle is tied significantly to its interest income model, which has been elevated by higher U.S. Treasury yields. Circle, the issuer of the USDC stablecoin, earns yield from the reserves backing USDC, much of which is held in short-term government securities o
avatarShyon
07-23
I firmly believe that Circle's $Circle Internet Corp.(CRCL)$  pullback to $180, as highlighted by the downgrade from Compass Point Research, is a golden opportunity for investors. The 7% drop following the shift from "Neutral" to "Sell" seems like an overreaction driven by fear rather than fundamentals. Analysts' concerns about a potential Federal Reserve interest rate cut impacting Circle's earnings and future profitability do not convince me. I see this as a temporary dip in an otherwise strong company with significant potential in the crypto and fintech space. Regarding the question of whether I agree with Compass Point Research's downgrade, I do not. Their reasoning hinges too heavily on hypothetical interest rate cuts and their projected
$Circle Internet Corp.(CRCL)$ Downgrades Circle: Pullback to $180 Again After the Party? The digital asset world is no stranger to volatility, but every now and then, a pullback feels more like a referendum than a routine correction. That’s the situation facing Circle, a company widely recognized for its USDC stablecoin and central role in the evolving crypto economy. After a period of strong momentum and price euphoria, Circle shares have tumbled 7% on the heels of a bearish analyst call. Compass Point Research downgraded its outlook on Circle from “Neutral” to “Sell,” with analysts warning that a Federal Reserve rate cut would eat into the company’s earnings and future profitability. This development has reignited fears of a deeper pullback, per
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$Circle Internet Corp.(CRCL)$ stock falls after first downgrade. Circle Internet Group (NYSE:CRCL) stock declined over 3% Tuesday after receiving its first downgrade since its June IPO, with shares that initially priced at $31 now trading above $200. Compass Point analyst Ed Engel downgraded CRCL from Neutral to Sell with a price target of $130, down from $205, citing concerns about the company's long-term economics relative to its $53 billion valuation. The downgrade comes after U.S. stablecoin legislation passed last week.  "We still believe USDC can be an integral part of the financial system; however, we're more cautious towards CRCL's long-term economics than its $53bn valuation implies," Engel wrote in his note to investors. The analyst
avatarIsleigh
07-22

📉 What's Triggering Today's Drop?

$Circle Internet Corp.(CRCL)$   Compass Point downgraded to Sell, cutting its PT to $130, flagging competition and margin compression . Profit-taking following its meteoric IPO surge; now trading nearer to profit-realization levels. Macro & crypto volatility: Bitcoin slipped from ~$123K to ~$119K, impacting sentiment . Regulatory headwinds: Investors await implementation details and clarity under the newly minted GENIUS Act. 🧭 Status of the GENIUS Act The GENIUS Act is now US law — signed by President Trump on July 18, 2025, after bipartisan passage in Congress. It mandates 1:1 asset backing and transparent reserves — a net positive for USDC issuers like Circle. However, implementation rests with regulators over the next 180 days; actual
📉 What's Triggering Today's Drop?
avatarToNi
07-22

The Hidden Resilience of Circle: A Contrarian Take on the Downgrade Drama

The recent downgrade of Circle Internet Group’s stock rating from “Neutral” to “Sell” by Compass Point Research, coupled with a 7% stock price drop to $180, has sparked widespread concern about the future of this stablecoin giant. Analysts point to the looming threat of Federal Reserve interest rate cuts, which could erode Circle’s earnings due to its reliance on interest income from USDC reserves. However, a deeper dive into the data and market dynamics reveals a contrarian perspective: Circle’s strategic pivots and the evolving crypto landscape suggest a resilience that the downgrade may overlook. The Downgrade Narrative: A Surface-Level Concern Compass Point’s downgrade hinges on a straightforward logic: if the Fed cuts rates, Circle’s profitability could suffer. With USDC’s circulation
The Hidden Resilience of Circle: A Contrarian Take on the Downgrade Drama

Analyzing Circle's Downgrade: Fed Rate Cuts and the Future of Stablecoin Stocks

In the fast-paced world of fintech and cryptocurrency, Circle Internet Group ( $Circle Internet Corp.(CRCL)$ ) has been a standout performer since its June 2025 IPO. However, recent market turbulence has spotlighted the company's vulnerabilities. A community topic, "Downgrades Circle: Pullback to $180 Again After the Party?”, raises timely questions amid Circle's stock dipping around 7% on July 23, 2025, as it trades near $200 after a sharp pullback from its post-IPO highs. I largely agree with Compass Point's downgrade. Below, I'll break down my reasoning, supported by detailed data analysis—including simulated key scenarios based on Python-like logical computations—and explore the broader implications of anticipated Federal Reserve rate cuts on
Analyzing Circle's Downgrade: Fed Rate Cuts and the Future of Stablecoin Stocks
avatarBarcode
07-22
$Circle Internet Corp.(CRCL)$ $CME Ether - main 2507(ETHmain)$ $CME Bitcoin - main 2507(BTCmain)$ 🧠💥📉 After the GENIUS Act and Compass Slam: Will $CRCL Hold the $208 Lifeline or Fall to $181? 📉💥🧠 The stablecoin celebration may be short-lived. $CRCL is showing a rising head and shoulders pattern with $208 acting as a critical neckline. A breakdown would invalidate the trendline that has underpinned its ascent since May. If this level gives way, there’s little stopping a trip to $181. Technically, this setup is delicate. Structurally, it’s a high-probability reversal formation; fundamentally, it’s under pressure from Compass Point’s downgrade from Neutral
avatarBarcode
07-22
$Circle Internet Corp.(CRCL)$ $Circle Internet Corp.(CRCL)$ $Coinbase Global, Inc.(COIN)$ $CME Ether - main 2507(ETHmain)$ 💡📊🧩 The DNA of a Stablecoin Giant: Does $CRCL Still Justify a $230+ Valuation? 🧩📊💡 $CRCL is caught in a valuation crossfire. On one hand, Bernstein sees it as a regulated rails powerhouse with a target above $230. On the other, Compass Point downgraded it to Sell and Mizuho warns it’s worth less than half that. This divergence of opinion reflects the deeper question: Can Circle sustain profitability once Fed rate cuts arrive and yield-derived earnings shrink? The stablecoin float has been a tail
avatarBarcode
07-22
$Circle Internet Corp.(CRCL)$ $Coinbase Global, Inc.(COIN)$ $Grayscale Ethereum Mini Trust ETF(ETH)$ 🔍📉🏦 Institutional Flow or Retail Mirage: What’s Really Powering the $CRCL Bounce? 🏦📉🔍 $CRCL bounced from oversold levels, but the real question is this: Are institutions stepping in on regulatory optimism, or is this just another head fake in a structurally fragile chart? The chart is showing classic distribution. That rising head and shoulders is now fully developed. $208 is the inflection. A hold there could spark a short-term move to $240, but if it cracks, the measured move suggests $181 is in play. Volume has been inconsistent, and the MACD is starting to flat
avatarBarcode
07-22
$Circle Internet Corp.(CRCL)$ $Coinbase Global, Inc.(COIN)$ $PayPal(PYPL)$ 💣📉🧠 $CRCL: Oversold, Loaded, and Poised to Detonate~ or Disintegrate? 🧠📉💣 $CRCL just nosedived over 30% in three sessions, triggering oversold RSI conditions on the 60-minute. The selloff comes after Compass Point slashed its rating to Sell and cut the price target to $130. Regulatory tension, earnings compression, and macro rotation have all converged, turning Circle’s post-IPO honeymoon into a volatility storm. Yet despite the breakdown, someone’s making a bold bet on the bounce. 🐂🐂🐂 Into the final hour of trade yesterday, bulls piled into the 4DTE $217.5C contracts with nearly $1.8M in
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