BIT: Circle drops 28%, valuation enters the watchlist again

Odaily · 2026-03-31T12:26:45+00:00

BIT reports that Circle's stock price has recently fluctuated, rising to $125 at one point before falling about 28%. The progress of the CLARITY Act may limit its yield products but will help with USDC's compliance positioning. Circle's valuation below $80 is worth monitoring.

Odaily

2026-03-31 12:26:45

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Odaily Planet Daily News: BIT released today’s chart, stating that in our report on February 25, we pointed out that when Circle’s share price fell to around $63, short positions were crowded, and covering could drive a rapid rebound. A few weeks later, the stock at one point rose to $125. In our daily report dated March 16, we assessed that this short-squeeze cycle had largely played out. Since then, the share price has fallen cumulatively by about 28%, and the price action has confirmed that view.

CLARITY Act has recently seen key progress: the compromise bill proposes to limit platforms from earning yield on idle balances held in cryptocurrencies. For Circle, the expansion room for some interest-bearing products may shrink; however, once the regulatory framework is finalized, USDC’s compliance positioning will be clearer. The plan has not yet been finalized, and combined with slower stablecoin growth and relatively low market activity, there is no clear catalyst in the near term. Under our fundamentals framework, as the share price gradually moves closer to below $80, Circle’s valuation has returned to an area worth monitoring.

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