On Thursday, crypto prices and U.S. stocks experienced a rally driven by easing tensions in the Middle East, yet Circle (CRCL), Bullish (BLSH), and Coinbase (COIN) faced significant stock declines.
Circle’s shares plummeted 9.9% to $85.10 following Compass Point’s downgrade from Neutral to Sell and a reduction of its price target by $2 to $77. The brokerage noted that USDC has fared better than in previous downturns, but highlighted concerns over supply growth moving into less profitable areas. It pointed out that Circle is trading at 40 times projected adjusted EBITDA for 2027, suggesting that forecasts for 2026 and 2027 might need downward adjustments as gross margins decrease in the first half of 2026.
The report also mentioned an increase in USDC holdings on platforms like Sky, Binance, and Ethena where revenue-sharing arrangements dilute Circle’s financials. In bear markets, this can be problematic since stablecoin supply remains constant while profit potential diminishes if more supply is held in low-yield channels.
Bullish shares dropped 6.5% to $36.12 after Rosenblatt downgraded the stock from Buy to Neutral, maintaining a price target of $39. According to Rosenblatt, Bullish trades at a premium with a 28 times consensus adjusted EBITDA compared to peers like Coinbase and Robinhood (HOOD). The brokerage noted increased vulnerability in estimates due to weakening crypto activity and diminishing IPO-related boosts to non-trading revenue.
Meanwhile, Bitcoin (BTC) soared above the $72,000 mark, reaching its highest level in over three weeks. This surge seemed connected to market optimism following developments in U.S.-Iran relations. Israeli Prime Minister Benjamin Netanyahu announced instructions for his cabinet to engage directly with Lebanon in negotiations.
This development was significant because senior U.S. officials mentioned that envoy Steve Witkoff had requested Netanyahu to reduce strikes in Lebanon and pursue dialogue, a shift from President Donald Trump’s previous stance which allowed Netanyahu more latitude before announcing a ceasefire with Iran on Tuesday.
The Nasdaq rose 0.8%, while the S&P 500 increased by 0.6%.