JPMorgan’s Kenneth Worthington expects that the New York Stock Exchange listed stablecoin issuing company Circle (CRCL), after a 6x increase in less than a week, will fall by double digit percentage points.
Bloomberg reports that Worthington set the price of Circle at $80, which is 56% less than its current price.
According to the JPMorgan analyst, Circle’s biggest challenge is competition, as other firms are preparing to release stablecoins.
Worthington Says
The launch of digital money markets funds and tokenized deposits are just a few of the new players looking to get into the digital dollars market. It is possible that only a small number of people will be able to gain enough market share in order to achieve critical mass, which would allow them to use the Circle .” network.
Amazon and Walmart are among the giants who are said to be planning stablecoins.
CRCL currently trades at about $182. This is up about 487% compared to the price at which it was first offered, $31. However, this is down about 39% compared to the high reached by the stablecoin issuer on the 23rd of June. Stablecoins issuer has a current market cap of just over 40 billion dollars and an earnings-to-price ratio of 234
Barclays, a British multinational bank is reported to be more bullish than JPMorgan on Circle. Barclays’ analyst Ramsey El-Assal set a $215 price target on CRCL, based on the belief that stablecoins tied to the US Dollar are poised to grow as traditional finance embraces them.
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This report, JPMorgan Chase’s Predictions of a Massive Correction in Circle’s (CRCL), appeared on the first page of The ICD.
