Analyst says Circle's ‘risk-free' stock is better than MicroStrategy
Analyst says Circle's 'risk-free' stock is better than MicroStrategy originally appeared on TheStreet.
Circle's stock (CRCL) made its public debut on June 5 and instantly became one of the most-watched listings in crypto and finance.
After opening at $69, the USD Coin (USDC) issuer surged as high as $120 within four days, triggering chatter that Circle could surpass even Michael Saylor's MicroStrategy (MSTR) in long-term profitability.
In a widely shared post on X, BitMEX Research wrote, 'The Circle [$CRCL] market cap has now reached 50% of the USDC in circulation. This would give Circle an 'infinite money glitch', which unlike $MSTR, would also be risk free.' They later added, 'If $CRCL goes up another 100%, it can start to become a US$ 'treasury company'. Selling its own shares, to buy more US$...'X.
Since IPO, CRCL has gained nearly 70%, while MicroStrategy has climbed a more measured 5.7% in the same period. But with rapid growth comes heightened volatility.
On June 10 alone, CRCL dropped more than 8%, signaling that the honeymoon may be over, at least for now.
Technically, Circle looks overheated.
The Relative Strength Index (RSI) for CRCL sits at approximately 74, indicating overbought conditions and a likely cooldown ahead. Its MACD line, which surged in the days after the IPO, is now flattening, and the histogram has begun to decline, potential early signs of weakening bullish momentum. MicroStrategy's RSI, by contrast, is a healthier 62, suggesting it's still in a bullish range but not yet overbought. Its MACD shows a solid upward trend, indicating growing strength without the kind of parabolic action that often precedes a reversal.
MSTR continues its slow, steady climb, bolstered by Bitcoin exposure and a seasoned investor base that's weathered several crypto cycles. Its price floor around $370 appears strong, offering a safer long-term bet, especially for those wary of post-IPO euphoria.
Even so, industry analysts agree. Circle's path is unique. The company holds over $24 billion in U.S. Treasuries, operates the second-largest stablecoin in the world, and now trades publicly with a valuation nearing $24 billion. Its listing also comes at a time when institutional demand for stablecoin rails and tokenized financial infrastructure is heating up.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies and stocks carries risk; always do your own research before making financial decisions.
Analyst says Circle's 'risk-free' stock is better than MicroStrategy first appeared on TheStreet on Jun 10, 2025
This story was originally reported by TheStreet on Jun 10, 2025, where it first appeared.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
24 minutes ago
- Wall Street Journal
Iran Says It Will Scale Up Nuclear Work After U.N. Atomic Agency Vote
Iran said it would open a new uranium enrichment facility and increase its production of highly enriched fissile material after the U.N. atomic agency member states declared Tehran had failed to comply with its nuclear nonproliferation obligations, casting a fresh shadow over struggling U.S.-Iran nuclear talks. Iran's announcement comes ahead of a sixth round of nuclear negotiations between the U.S. and Iran expected on Sunday. President Trump said on Monday he had grown less confident about striking a deal with Tehran.
Yahoo
28 minutes ago
- Yahoo
Bitcoin at $200K by Year-End is Now Firmly in Play, Analyst Says After Muted U.S. Inflation Data
Wednesday's softer-than-expected U.S. inflation has likely set the stage for accelerated gains in bitcoin BTC, potentially to $200,000 by the end of the year, according to Matt Mena, crypto research strategist at 21Shares. "If BTC breaks out of the $105K-$110K range with conviction, we could see a sharp move to $120K and, more importantly, reach our year-end price target of $138.5K by the end of the summer," Mena told CoinDesk in an email. "Today's CPI print may serve as a bullish catalyst for Bitcoin - and it may be the unlock that brings this target forward by several months. If momentum continues building, a $200K Bitcoin by year-end is now firmly in play," Mena added. 21Shares is one of the world's first and largest issuers of crypto exchange-traded products (ETPs), The report from the Labor Department released Wednesday showed that the cost of living, measured by the consumer price index (CPI) rose 0.1% last month after increasing 0.2% in April. Economists surveyed by Reuters had forecast a 0.2% increase. Notably, the CPI for durable goods, most of which are imported or manufactured with imported content, decreased by a seasonally adjusted 0.1% month-to-month (-1.3% annualized), indicating that President Donald Trump's tariffs have not yet been fully passed through to the final consumer. The annualized CPI advanced 2.4%, with core inflation matching the pace of April at 2.8%. "This continued trend of cooling inflation strengthens the case for potential policy easing later this year. With the Fed's June meeting approaching, the focus now shifts to how soon policymakers may respond to cooling inflation and shifting macro clarity," Mena said in an email to CoinDesk. The CPI report prompted traders to price in 47 basis points of Fed easing, equivalent to roughly two 25 basis point rate cuts, this year, compared to 42 basis points early this week. Further, traders priced fully priced the rate cut for October, with the September probability hovering above 70%. Mena explained that the CPI tailwind comes on the heels of several bullish catalysts, such as sovereign and institutional adoption and the impending stablecoin regulation. "As macro clarity improves, we should see Bitcoin flows accelerate - driven by renewed institutional confidence, increased activity from Bitcoin treasuries, and the continued rollout of state-level Strategic Bitcoin Reserve (SBR) programs. These dynamics could supercharge ETF inflows and reinforce Bitcoin's evolving role in global portfolios. Bitcoin is built for this environment," Mena noted. BTC changed hands at $108,440 at press time, according to CoinDesk data.
Yahoo
31 minutes ago
- Yahoo
Australia's defense minister downplays concerns over Pentagon review of multi-billion submarine deal
BANGKOK (AP) — Australia's defense minister dismissed concerns Thursday that a deal between the U.S., Australia and Britain to provide his country with nuclear-powered submarines could be in jeopardy, following a report that the Pentagon had ordered a review. Australian Defense Minister Richard Marles told Sky News Australia that he had known about the review of the deal 'for some time," saying that it was a 'very natural step for the incoming administration to take.' He noted that the UK's government also reviewed the deal, the centerpiece of a three-way alliance known as AUKUS after it was elected, and that his own government had looked at it as part of its own review of Australia's entire defense posture. "I think an incoming government having a look at this is something that they have a perfect right to do and we welcome it and we'll work with it,' he said. The deal, worth more than $200 billion, was signed between the three countries in 2021 under then President Joe Biden, designed to provide Australia, one of Washington's staunchest allies in the region, with greater maritime capabilities to counter China's increasingly strong navy. The deal also involves the U.S. selling several of its Virginia-class submarines to Australia to bridge the gap as the new submarines are being jointly built. In January, Australia made the first of six $500 million payments to the U.S. under the AUKUS deal, meant to bolster American submarine manufacturing. Marles met with U.S. Defense Secretary Pete Hegseth on the sidelines of a defense conference in Singapore less than two weeks ago, and told reporters afterward that he had come away with 'a sense of confidence about the way in which AUKUS is proceeding.' 'AUKUS is on track and we are meeting all the timelines that are associated with it,' he said. 'We are very optimistic.' Hegseth's address to the defense forum made multiple mentions of cooperation with Australia but no reference to AUKUS, however, though he did later mention the deal when he was taking questions. Hegseth did urge allies in the Indo-Pacific to increase their defense spending, and underscored the need for a 'strong, resolute and capable network of allies and partners' as the U.S. seeks to counter China.
