Monness Crespi dismissed President Trump’s recent pro-crypto Truth Social posts as “saber rattling” political talk that doesn’t necessarily imply real policy or laws will change.
- Circle’s stock jumped 5.59% while Coinbase shares dropped 1.64% after Moness Crespi said it was was adding to its short position in Coinbase and maintaining a long bet on Circle.
- It reiterated a ‘Sell’ rating for COIN’s stock with a price target of $120 and a ‘Buy’ rating for Circle with a $125 price target.
- Bernstein analysts also reiterated a bullish outlook on Circle and predicted the company could reach profitability this year.
Shares of Circle Internet Group (CRCL) surged Tuesday while Coinbase (COIN) slipped after Monness Crespi said it was adding to its short position in Coinbase and maintaining a long bet on Circle, even amid President Donald Trump’s support for the crypto industry, blaming banks for holding the CLARITY Act “hostage.”
CRCL’s stock jumped 5.59% on the day to close the day at around $118, while COIN’s stock fell 1.64% to around $194. Stocktwits data showed that retail sentiment around Circle improved to ‘bullish’ from ‘neutral’ territory over the past day while sentiment around Coinbase dipped to ‘bearish’ from the ‘neutral’ zone. Both saw an uptick in chatter, with message volumes around COIN’s stock increasing by 36% and CRCL’s stock seeing an uptick of around 27% over the last 24 hours.
The share price moves came after Monness Crespi said it plans to add to its Coinbase shorts and remains long Circle, as per TheFly. It reiterated a ‘Sell’ rating for COIN’s stock with a price target of $120 and a ‘Buy’ rating for Circle with a $125 price target.
Trump Is Just ‘Saber Rattling’
According to the firm, Circle stands to gain after bank’s rejected last week’s compromise where crypto firms would only be able to offer rewards on stablecoin transactions, and not deposits.
Not being able to offer stablecoin rewards “materially changes the calculus for main distribution node and the commercialization path for stablecoins,” Moness Crespi wrote, stating that the move favors Circle Internet. If yield mainly comes from transactions, the advantage shifts more toward the issuer, rather than the exchange distributor.
It added that Trump’s post on Truth Social last week “represented more saber rattling than anything else,” noting that there is “a difference between saber rattling, policy advocacy, and the trajectory of legislation.”
“The banks should not be trying to undercut the GENIUS Act, or hold the CLARITY Act hostage,” Trump wrote, reiterating his pledge to make the U.S. “the crypto capital of the world.”
Bernstein SocGen Group also reiterated its ‘Outperform’ rating for Circle’s stock with a $190 price target on Tuesday, according to Investing.com. It cited the USDC issuer’s stablecoin focus on adoption and the fact that its share price had more than doubled from recent lows for its bullish stance. The analysts predicted that the company is likely to be profitable by the end of the year, despite current losses.
Read also: Dogecoin Leads Crypto Majors While Bitcoin Struggles To Hold $70,000 After Trump’s Warning To Iran
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