Analysis: The situation in Iran and short squeezes have jointly led to the recent rise in CRCL
Circle (CRCL) stock price rose 9.7% on Monday, with a cumulative increase of 86% over the past month. Analysts indicate that the escalation of the situation in Iran has led to a rise in oil prices of about 35% since February 28, intensifying inflation expectations and potentially forcing the Federal Reserve to delay interest rate cuts. Since stablecoin issuers earn returns through investments in dollars, a high interest rate environment is generally favorable for them.
Additionally, Markus Thielen, founder of 10x Research, stated that this surge was also influenced by trader positions, as hedge funds accumulated a large number of bearish positions before the earnings report, and the company's solid performance in the fourth quarter triggered a high probability of a short squeeze. Currently, short positions in Circle account for about 13% of the outstanding shares.
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