US stock market anomaly | Circle (CRCL.US) drops more than 7%, institution downgrades Circle's rating to "sell"

According to the Securities Times app, on Tuesday, Circle (CRCL.US) fell more than 7% to $200.30. On the news front, on July 22, investment firm Compass Point Research downgraded Circle's rating from "neutral" to "sell." Analysts pointed out that if the Federal Reserve cuts interest rates, Circle's earnings are expected to decline, which could affect its future profit potential. It is reported that Circle's revenue structure is mainly interest income, with the circulation of its stablecoin USDC at around $60 billion, and interest generated from reserve assets (mainly U.S. treasuries) contributing to 99% of its income; if the Federal Reserve cuts interest rates, a decrease in treasury yields will directly reduce this part of the income.