Matrixport: Although the industry's structural growth expectations still provide support, the market's valuation of Circle may not be equally optimistic.

Deep Tide TechFlow News, February 25 — Matrixport reports that today’s chart indicates “Circle is about to release its quarterly earnings, and market focus is once again on the stablecoin sector. As one of the most attractive structural growth tracks in the digital asset space, the performance of stablecoins remains highly watched. However, although industry growth expectations still provide support, market pricing of Circle may not be equally optimistic.

After a rapid surge during its initial listing, Circle’s stock price has recently pulled back significantly. Meanwhile, hedge funds have built substantial short positions, with short holdings at high levels, making it one of the crypto concept stocks with concentrated short interest. This suggests that, despite ongoing industry growth expectations, market sentiment toward its short-term performance remains cautious.

Based on current expectations and pricing, the market has not priced in overly high expectations for Circle’s current quarter earnings, and significant outperformance is not the baseline scenario. However, with short positions still high, if the earnings report exceeds expectations, short covering could amplify upward price movements. Overall, Circle is at the intersection of industry growth logic and cautious trading positions, a combination that warrants ongoing attention.”