BIT: Circle fell 28%, and its valuation is once again under scrutiny.

BIT released a chart today stating that in our February 25th report, we pointed out that when Circle's stock price fell to around $63, short positions were crowded, and short covering was expected to drive a rapid rebound. A few weeks later, the stock rose to $125. In our March 16th daily report, we judged that this short squeeze had largely been priced in. Since then, the stock price has fallen by approximately 28%, confirming this assessment. The CLARITYAct has recently seen key developments: a compromise draft proposes to restrict platforms from providing returns on idle token holdings. For Circle, the expansion space for some interest-bearing products may narrow; however, once the regulatory framework is finalized, USDC's compliance positioning will become clearer. The plan has not yet been finalized, coupled with slowing stablecoin growth and low market activity, lacking clear catalysts in the short term. According to our fundamental framework, as the stock price gradually approaches below $80, Circle's valuation has re-entered a noteworthy range.