10x Research: Circle surged due to short squeeze; subsequent market trading logic will likely return to fundamentals.

10x Research, in an analysis published on the X platform, pointed out that the core driver of Circle's stock price surge yesterday was not the earnings report itself, but rather the market positioning structure. This structure is more likely to trigger a high-probability short-covering rally, rather than a simple fundamental revaluation. It is reported that some hedge funds established large short positions before the earnings release; however, as Circle's stock price surged in a single day, triggering a sharp short squeeze, the hedge funds suffered losses of approximately $500 million in a single day. 10x Research added that this round of sharp fluctuations not only affected Circle but also impacted Coinbase and Bitcoin. Although Circle is a clearly bullish stock, the overall price movement was mainly driven by the imbalance in the overall positioning structure of the crypto market. A new market catalyst may be emerging soon, potentially reshaping the market narrative, after which market trading logic may return to fundamentals.