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During the current market cycle, crypto stocks have taken a major beating, including Circle (CRCL), Coinbase (COIN), MicroStrategy (MSTR), and BitMine (BMNR). The USDC stablecoin issuer has been facing the heat from competitors like Tether (USDT), and the recent launch of OpenUSD (OUSD) stablecoin. Despite a strong correction, top banks see the Circle stock to see further downside pressure, with targets ranging lower to $50.
Mizuho Bank Downgrades Circle Stock Price Target to $50
Japanese investment bank Mizuho Financial Group downgraded the Circle stock (CRCL) from neutral to underperform, thereby cutting down its price target from $85 and $50. This is despite the fact that the CRCL stock is already down by 75% over the past year, dropping all the way from $263 to now at just $63.
Mizuho believes that Circle’s USDC stablecoin faces a major threat from the newly announced OpenUSD (OUSD) stablecoin. The OUSD distributes a large portion of reserve income to issuers and distribution partners. Mizuho believes that this could force Circle to lose its earnings share and put pressure on the profit margins.
As a result, the bank raised its forecast for Circle’s 2027 distribution and transaction expense ratio from 64% to 73%. It also lowered its adjusted EBITDA estimate for 2027 to $699 million, down from its previous forecast of $1.09 billion.
Similarly, investment bank Baird has lowered its Circle stock price target from $138 to $100. The firm also warned that Circle’s revenue for the second quarter of 2026 is likely to come in below current Wall Street estimates.
Is Circle Stock A Buy-the-Dip Opportunity?
After falling so much over the past year, market experts see a good opportunity in the Circle stock for the long term. Experts believe that the arrival of the Clarity Act as crypto legislation will eventually benefit the Circle Internet Group.
The federal oversight will be a major milestone for Circle, noted Brett Kesler, and will open the door for USDC institutional adoption. Furthermore, the Office of the Comptroller of the Currency (OCC) approved Circle’s business plan. Thus, the stablecoin firm can expand fiduciary custody services directly to major financial institutions and regulated derivatives organizations.
As per Brett Kessler, this OCC approval serves as a major moat for Circle Internet Group. This could eventually push the Circle stock higher in the next 3-5 years. Crypto analyst The Wave Analyst shared a bullish outlook for the Circle stock, as per the Elliot wave chart.
He noted that the CRCL stock continues to follow the technical roadmap outlined over the past three months. According to the analyst, CRCL’s price is converging with a key moving average and a major Fibonacci support level.
The analyst identified $136.65 as the first major breakout level. A move above that level could accelerate the stock’s next advance, with Wave 3 price targets at $235, $258, and $288. Looking further ahead, The Wave Analyst projected Wave 5 targets of $499 and $605 if the broader bullish structure remains intact.
This article is for informational purposes only and should not be considered financial or investment advice. Stocks, cryptocurrencies, and stablecoin-related businesses remain subject to market, regulatory, and competitive risks. Readers should conduct their own research and assess their financial circumstances before making investment decisions.
Circle Group Key Partnerships
In the latest development, the Circle Internet Group announced its partnership with Japan’s largest card network, JCB. The two players signed a memorandum of understanding (MoU) to explore USDC cross-border payments and merchant transactions.
The partnership comes as Japan accelerates efforts to integrate stablecoins into everyday commerce. JCB, which serves approximately 140 million cardholders and 40 million merchants globally. Together, they will work with Circle to evaluate how to leverage USDC stablecoin to improve payment efficiency.
As part of the collaboration, the companies will initially develop a proof of concept focused on JCB’s internal fund transfers. They will also assess the use of USDC to streamline treasury operations.
