Circle's biggest short seller just conceded defeat, but he warns that this stock is still a roller coaster in the crypto sector.
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According to a report by Bijie Network: Circle has received its second analyst rating upgrade within a week, as Compass Point analyst Ed Engel upgraded the rating from "Sell" to "Neutral," though he maintained a minimum target price of $60. Engel now believes that Circle's trading is more akin to a cyclical cryptocurrency alternative rather than an independent fintech company. He pointed out the high correlation between USDC and Ethereum, as well as its widespread use in high-risk crypto activities. He mentioned risks such as the decline in USDC supply, competition from new types of stablecoins and traditional bank deposit tokens, and the potential for higher fees. Catalysts for an upside include regulatory clarity that may come with the CLARITY Act and the growth of tokenized assets.
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