Analysis: The market may not be optimistic about Circle's pricing; high short positions could amplify volatility after the earnings report.

PANews reported on February 25th that Matrixport stated in its analysis today that Circle is about to release its quarterly financial report, and market attention is once again focused on the stablecoin sector. As one of the most attractive structural growth tracks in the digital asset field, the future performance of stablecoins is attracting much attention. However, while the industry's structural growth expectations remain supportive, the market's pricing of Circle may not be in line with this optimism.

After a rapid surge in its initial public offering (IPO), Circle's stock price has recently seen a significant pullback. Simultaneously, hedge funds have built up substantial short positions, resulting in high short holdings and making it one of the most shorted crypto stocks. This indicates that despite continued industry growth expectations, the market remains cautious about its short-term performance. Based on current expectations and pricing, the market has not priced in excessively high expectations for Circle's quarterly earnings report; a significant exceedance is not the baseline scenario. However, given the still high short positions, if the earnings report outperforms expectations, short covering could amplify upward price volatility. Overall, Circle is at the intersection of industry growth logic and cautious trading positions, a combination that warrants continued attention.