Morgan Stanley Downgrade Crushes Circle Internet Stock

Morgan Stanley's downgrade of CRCL to 'Underweight' from 'Equal Weight' has sent shockwaves through the crypto market, leading to a decline in large-cap crypto equities.

The firm slashed its price target for Circle Internet by 60%, predicting a potential downside of nearly 40% from CRCL's closing price on Friday.

Circle could earn less money than many investors expect because the amount of USDC in circulation may not grow as quickly, according to Morgan Stanley analyst James Faucette.