Stock analysts at Wall Street’s Wolfe Research have rang the bear bell on Circle (CRCL) stock, downgrading its rating to “sell.” This week, analyst Darrin Peller initiated coverage of CRCL with a Sell rating and a price target of $60. Such a decline from its current $78 price would be a whopping 30% dip. The stock is also down over 400% from its $263 peak in June 2025.

While Peller noted several positives, he is bearish on CRCL stock due to headwinds related to interest rates and growing competition. CRCL stock has declined 40% over the past month amid weakness in the crypto market and margin pressures. The decline began with its Q3 2025 earnings report, one that saw the exchange beat analysts’ forecasts. Despite the solid earnings, Circle updated its full-year outlook to reflect higher expenses, which sent analysts and investors onto the bearish side of its stock.

Peller went on to add that the company’s focus on establishing a platform that complies with evolving regulations and addresses the needs of traditional financial institutions has resulted in notable share gains in recent years. The analyst highlighted that CRCL issues USDC and EURC, delivering estimated 2025 revenues of over $2.75 billion, with over 96% from interest income. Circle Internet’s reliance on interest rates presents a near-term risk as the Federal Reserve is expected to cut rates once again this December.

Since its blockbuster IPO debut in June, Circle (CRCL) stock is up 180% as landmark legislation passed earlier this year paved the way for stablecoin adoption. The shares, however, remain roughly 60% below all-time highs reached over the summer. The latest slip could last longer as well, given the increased spending in AI that is scaring some investors.

Outside of Wolfe Research, currently, Wall Street has a Moderate Buy consensus rating on Circle Internet stock based on 10 Buys, five Holds, and three Sell recommendations. The average CRCL stock price target of $145.87 indicates 87% upside potential.