The rally in Circle (CRCL) stock could just be starting.
The call: With bitcoin (BTC-USD) prices coming back to life as the Treasury injects liquidity into the bond market, Circle shares have been rocking
The stock is up 23% in the past five days and trading at its highest level since mid-June, per Yahoo Finance AlphaSpace data. Bernstein analyst Gautam Chhugani reiterated his Outperform rating on the stock and set a $140 price target in a note on Monday, implying at least 75% upside. Chhugani outlined three main bullish points on Circle: – “We believe the recent momentum in crypto markets can be enduring, and we could be at the beginning of a new expansion cycle driven by macro regime change, real-world blockchain capital markets, stablecoin payments adoption (not just crypto) and some nascent signs of a stablecoin-led agentic economy.” – “We believe, this growth cycle is independent of the CLARITY Act passing in the September session.
We believe, the SEC/CFTC intervention would accelerate if the Senate does not support CLARITY in the Sept. 15 vote. This is now acting as a pressure point for the Senate to pass the bill. In absence of CLARITY, the third-party stablecoin rewards continue as status-quo (direct yield on balances by Coinbase) and if CLARITY passes, stablecoin rewards are linked to user activity and not idle balances (indirect rewards).