US Stock Market Move | Circle (CRCL.US) fell more than 4%. Analysts: If US bond yields fall, company profits may be under pressure.

On Thursday, Circle (CRCL.US) fell over 4%, to $154.57. Since July 18th, Circle's stock price has been continuously adjusting. Analysts pointed out that although Circle has already established a position as the "leader of compliant stablecoins", allowing it to potentially gain more market share as the industry expands, the fact that the Federal Reserve has entered a rate cut cycle means that US bond yields could drop to 2% or lower, directly impacting Circle's profits. Furthermore, the analysts believe that with more traditional financial institutions entering the market, and with competitors (such as some emerging stablecoins) starting to pay interest to holders, Circle's "no-interest financing" model will face challenges and could further lose market share in compliant stablecoins. Circle currently only relies on reserve fund income as a source of profit, which may not be enough to support a higher market value.