10x Research: Circle surged due to a short squeeze, but future market trading logic will still return to fundamentals

10x Research posted an analysis on X, pointing out that the core driver behind Circle's stock price surge is not the financial report data itself, but rather the market position structure. This structure is more likely to trigger a high-probability short squeeze rather than a simple fundamental revaluation. It is reported that some hedge funds established large short positions before the financial report was released. However, as Circle's stock price soared in a single day, triggering a severe short squeeze, these hedge funds suffered a single-day loss of about 500 million USD.

10x Research further stated that this round of sharp volatility not only affected Circle, but also impacted a certain exchange and bitcoin. Although Circle is clearly a bullish target, the overall market movement was mainly driven by the imbalance in the overall position structure of the crypto market. A new market catalyst may soon emerge, potentially reshaping the market narrative, after which market trading logic may return to fundamentals.