Morgan Stanley Slashes Circle Price Target to $38 on Slower USDC Growth Morgan Stanley downgraded Circle to underweight from equal-weight and cut its price target to $38 from $106, citing a weaker long-term earnings outlook. The bank expects slower USDC growth, greater pressure

What happened

Morgan Stanley downgraded Circle to underweight from equal‑weight and cut its price target from $106 to $38, saying it expects slower USDC growth and weaker long‑term earnings.

Confirmed

Global impact / market context

A lower price target shows analysts think Circle’s revenue from its stablecoin, USDC, will grow more slowly, which could lower investor confidence and reduce the company’s market value.

Analyst inference

Stablecoins such as USDC are widely used for quick digital payments; slower growth could reduce the amount of cash‑like assets available for traders and increase pressure on businesses that depend on these tokens for transactions and other blockchain services.

Analyst inference

What to watch

1. Circle’s quarterly USDC issuance figures to confirm whether the growth rate is indeed slowing as analysts expect. Proposed
2. Any new regulations on stablecoins that might change the environment for USDC adoption and usage. Proposed
3. Morgan Stanley’s future earnings forecasts for Circle, which will reveal if the price‑target cut was justified. Proposed

Affected assets

• USDC — USD Coin

Evidence

• x.com