Cryptocurrency Concept Stocks Rally With Bitcoin Amid Geopolitical Conflict; Circle(CRCL.US)Gains 46% YTD as Institutions Raise Price Target to $136

Amid ongoing tensions in the Middle East and a rebound in cryptocurrency prices, stocks of companies related to stablecoins and digital assets have generally strengthened recently. Among them, stablecoin issuer Circle (CRCL.US) has become one of the standout winners in the industry. Several institutions believe that as the use cases for stablecoins continue to expand, the company’s stock still has room for further growth.

According to the SmartFinance APP, US investment bank Clear Street upgraded its rating on Circle stock from “Hold” to “Buy” in its latest research report, raising the target price from $92 to $136. The firm believes that since early February, the adoption rate of USDC, a dollar-pegged stablecoin, has significantly increased, indicating that more financial institutions and ordinary users are beginning to use stablecoins for payments and cross-border transactions.

Driven by this, Circle’s stock rose 9% on Monday to $125.83, reaching its highest level since October last year. Since the beginning of the year, the company’s stock has increased approximately 46%. Data shows that the circulation of USDC once exceeded $78 billion in December last year, then fell back to about $70 billion at the end of January, but has recently risen again to a record high of approximately $79 billion.

Analysts point out that disruptions to the financial system and trading channels caused by Middle East conflicts may have contributed to the increased demand for stablecoins. Since USDC is widely used for remittances and cross-border payments, its transactional properties have been further demonstrated amid obstacles in traditional financial channels. Owen Lau, an analyst at Clear Street, stated that during recent market turbulence, USDC’s market cap continued to grow, while global stock and crypto markets experienced volatility, indicating that demand is driven more by real trading needs rather than speculation.

In addition to payment scenarios, the application of stablecoins in the financial sector is also expanding. For example, more institutions are tokenizing funds—digitizing assets and trading them on blockchain platforms. Although these platforms may not exclusively use USDC for settlement, USDC’s strong compliance and broad compatibility are making it one of the main settlement currencies.

Furthermore, the development of prediction markets could further boost USDC demand. Prediction trading platform Polymarket plans to expand its operations in the U.S., and most such platforms use USDC for transaction settlement. Data shows that Polymarket alone facilitated approximately $22 billion in transactions last year.

Another emerging trend attracting market attention is Agentic AI. Industry experts believe that in the future, AI agents may automatically handle tasks such as booking flights, signing contracts, or making purchases—operations that require 24/7 digital wallets and instant settlement systems. Circle is developing the Arc blockchain protocol, aiming to provide the underlying infrastructure for AI agent payments.

Analysts note that growth in stablecoin business indicates that Circle’s business model is not entirely dependent on Bitcoin price fluctuations. Compared to traditional cryptocurrencies, the growth logic of payment-focused stablecoins is more driven by upgrades in financial infrastructure and digital payment demand.

Meanwhile, the regulatory environment for the crypto industry could also impact capital inflows. The market is currently paying attention to the progress of the U.S. “Digital Asset Market Clarity Act” (CLARITY Act), which addresses issues such as whether stablecoin deposits can earn yields. With President Trump calling for a bipartisan compromise, Clear Street expects the relevant legislation to be passed by late summer this year, providing a clearer regulatory framework for institutional investment in digital assets.

Driven by the rebound in digital asset prices, several stocks related to cryptocurrencies have also risen in tandem. The world’s largest Bitcoin holder, MicroStrategy (MSTR.US), disclosed that between March 9 and this Sunday, it repurchased 22,337 Bitcoins for about $1.57 billion. Meanwhile, the stock prices of crypto exchange Coinbase (COIN.US) and online broker Robinhood (HOOD.US) have also increased.

Data shows that Bitcoin, the world’s largest cryptocurrency, rebounded amid recent geopolitical tensions, rising about 3.8% in the past 24 hours to approximately $74,000, up about 10% since the U.S. first launched an attack on Iran on February 28.