LBank Exchange Analyst Notes Market Hesitation as Circle (CRCL) Slides 8% Amid Institutional Competition
Shares of stablecoin issuer Circle (CRCL) fell 8% on Thursday as bitcoin struggled to hold the $85,000 level and liquidity surged into crypto markets. This decline extends a sector-wide slump from January, with trading volumes collapsing to $900 billion from $1.7 billion year-over-year, according to data from TheTie.
"Bitcoin's stagnation at $85,000 reflects palpable market hesitation," stated Eric He of LBank Exchange. He noted that geopolitical tensions are driving risk aversion across all asset classes, not just digital currencies.
Circle faces mounting pressure as traditional finance giants MOVE into the stablecoin arena. JPMorgan, Bank of America, and Fidelity Investments—collectively armed with $6 trillion in assets—are developing competing products that could challenge CRCL's institutional appeal.
Despite these near-term headwinds, analysts maintain a bullish outlook for Circle through 2026, with a consensus price target between $135 and $138. The company's long-term prospects are seen as intact, even as established financial players reshape the stablecoin landscape.
