JPMorgan Warns Circle Stock Could Crash Over 50% After Explosive Rally
Circle’s Wall Street debut has been nothing short of spectacular, with its stock climbing nearly 500% since hitting the public markets in early June.
But as excitement builds, JPMorgan is stepping in with a sobering reality check.
According to a new outlook reported by Bloomberg, JPMorgan’s Kenneth Worthington believes Circle’s current valuation is overheated and vulnerable to a steep correction. He’s placed a price target of $80 per share — a significant 56% drop from where the stock stands today.
The concern? Growing competition in the stablecoin space. Worthington points to a wave of new players — from tech giants to traditional financial institutions — gearing up to enter the digital dollar market. With the bar to entry relatively low and brand loyalty still forming, Circle may face pressure to defend its position.
Among those reportedly eyeing the stablecoin sector are none other than Amazon and Walmart — names with the scale and reach to disrupt even the most dominant incumbents.
While Circle continues to command a hefty $40 billion valuation, trading at over $180 per share after opening at just $31, the momentum may not be sustainable. The stock has already pulled back from a high near $300 in late June, sparking debates over whether its rally was premature.
Not everyone sees trouble ahead. Barclays analyst Ramsey El-Assal remains bullish, projecting that dollar-pegged stablecoins like Circle’s will continue to gain ground as traditional finance embraces tokenized money.
With Wall Street now divided on Circle’s trajectory, investors may soon find out whether the recent run-up was justified — or simply the calm before a storm of competition.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov ist jemand, der immer nach der Logik hinter den Dingen sucht. Er spricht vorzüglich Deutsch und hat mehr als drei Jahre Erfahrung im Kryptobereich, wo er geschickt neue Trends in der Welt der digitalen Währungen erkennt. Ob er nun fundierte Analysen oder tägliche Berichte zu allen Themen liefert, sein tiefes Verständnis und seine Begeisterung für das, was er tut, machen ihn zu einem wertvollen Mitglied des Teams.
