Circle's stock fell nearly 10%, impacted by a rating downgrade and the Drift Protocol incident.

Circle Stock Drops 10% on Downgrade, Broader Crypto Concerns

Circle's stock took a hit on Thursday, falling 9.9% to close at $85.10. The drop came after Compass Point downgraded the stablecoin issuer from neutral to sell, cutting its price target to $77.

The stock is down nearly 24% over the past month and about 43% over the past six months. Bernstein analysts argue that market fears are overblown. Circle's underlying business remains unaffected, they said, with USDC usage and reserve income still strong.

Adding to the pressure: legal scrutiny from the Drift Protocol security breach is also weighing on crypto market sentiment. Affected investors are being encouraged to contact law firm Gibbs Mura for potential recovery. The Drift attacker converted stolen funds into USDC, sparking debate over whether Circle should freeze the assets—but the company has not acted.