Circle's stock surged 35% following strong Q4 2025 results, leading to a $500 million loss for hedge funds caught in a short squeeze. The stablecoin issuer reported a 72% increase in USDC adoption, with total revenue and reserve income rising 77% year-over-year to $770 million. USDC circulation reached $75.3 billion, and on-chain transaction volume hit $11.9 trillion, marking a 247% increase. Coinbase (COIN) and MicroStrategy (MSTR) also saw significant gains, with COIN rising 13.5% as it expanded into stock and ETF trading, and MSTR climbing 8.8% amid high short interest. Coinbase's new features include commission-free trading of U.S.-listed stocks and ETFs, while MSTR remains the most shorted large-cap U.S. stock, with short interest at 14% of its market cap. The crypto market's bullish momentum is further supported by Bitcoin's 10% price increase over two days.