10x Research: Circle surges due to short squeeze; the subsequent market trading logic will still return to fundamentals

Odaily Planet Daily reports that 10x Research analyzed on the X platform that the core driver behind Circle’s stock price increase yesterday was not the earnings data itself, but the market positioning structure. This structure is more likely to trigger a high-probability short squeeze rather than a simple revaluation of fundamentals. It is reported that hedge funds had established large short positions before the earnings release. However, as Circle’s stock price surged in a single day, triggering a fierce short squeeze, hedge funds suffered an estimated $500 million in losses in one day. 10x Research added that this round of intense volatility not only affected Circle but also impacted Coinbase and Bitcoin. Although Circle is clearly a bullish target, the overall market movement was mainly driven by an imbalance in the overall crypto market positioning. A new market catalyst may soon emerge, potentially reshaping market narratives, after which trading logic might revert to focusing on fundamentals.