$Circle(CRCL.US) Circle needs two things: liquidity + network effects. The tightening over the past two months has blown a "golden pit" (prime buying opportunity) in Circle. By 2026, as market liquidity recovers, trade agreements are implemented, and economic growth picks up—with the GENIUS Act expected to be fully rolled out around late 2026 to early 2027—corporate capital will likely flood into USDC explosively. Around the same time, Circle's revenue outside of reserve interest is also projected to reach double-digit percentages, with the subsequent snowball effect speaking for itself.
The countdown is on for the Federal Reserve (Fed) meetings on December 9th and 10th. The market has already priced in another 25-basis-point rate cut as a "baseline expectation." Wall Street's focus is shifting from interest rate decisions to balance sheet policy. Former New York Fed repo trading expert and current Bank of America rates strategist Mark Cabana anticipates that, besides announcing a 0.25 percentage point rate cut next Wednesday, Chair Jerome Powell may simultaneously unveil a balance sheet expansion plan starting January 2026. This plan would involve monthly purchases of $45 billion in Treasury bills, injecting new reserves into the financial system.