Wall Street analyst Ed Engel, previously the largest short seller of Circle stock, has upgraded his rating from "sell" to "neutral" while reducing the price target from $75 to $60. Engel cautions that Circle's stock remains highly volatile, closely mirroring the cryptocurrency market's fluctuations. He notes that over 75% of USDC, Circle's stablecoin, is engaged in high-risk DeFi activities, leading to a 0.66 correlation with Ethereum prices. Engel highlights that Circle's stock performance is increasingly aligned with Ethereum and broader crypto market cycles, effectively making it a cyclical stock despite being a stablecoin issuer. He identifies potential growth catalysts, such as the Clarity Act's passage and the tokenization of US assets in DeFi, which could enhance regulatory clarity and reduce reliance on crypto sentiment. However, Engel warns that Circle's revenue will remain linked to speculative activities in the near term, with a full decoupling from crypto cycles potentially taking years.