Shares in stablecoin issuer Circle (CRCL) tanked 8% on Thursday after Bitcoin fell below $85,000 and crypto liquidity surged. Stocks tied to the crypto sector continued their big January declines, with CRCL taking a heavy hit today.
Aside from declines in crypto prices, exchanges are seeing lower spot trading volumes as the bear market lengthens. Data from TheTie shows that spot volume across exchanges in January was just $900 billion versus $1.7 billion seen a year prior. “Bitcoin has been stuck around the $85,000 level, and you can feel the hesitation in the market,” Eric He, Community Angel Officer and Risk Control Adviser at crypto exchange LBank, said Thursday. “With geopolitical tensions rising, investors are staying cautious,” he added, “and that’s showing up across assets, not just crypto.”
Additionally, major banks and firms are starting to slide into the stablecoin game, challenging Circle’s CRCL stablecoin. Indeed, $6 trillion asset manager Fidelity Investments says it plans to launch its own crypto stablecoin. Now, JPMorgan, Bank of America, and Fidelity are creeping into a space where they can bring in more institutional interest from big clients than the likes of Circle and Tether.
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Furthermore, Based on early 2026 analyst forecasts, Circle (CRCL) holds a generally bullish outlook with a consensus “Buy” rating. Analysts predict an average 12-month price target around $135–$138, indicating a potential upside of 85% to over 90% from recent levels. Forecasts range from a low of $60 to a high of $280. Most of the Wall Street consensus also rate CRCL either a buy or hold, with only a handful advising that CRCL is a sell.