Mizuho analysts Dan Dolev and Alexander Jenkins lifted their target for Circle Internet Financial (NYSE: CRCL) from $90 to $100, while still sticking to an impartial rating. The move reflects macroeconomic tailwinds rather than sudden changes in Circle’s core business.

The analysts tied the adjustment largely to recent energy price gains following escalating Middle East tensions. West Texas Intermediate crude rose roughly 7% to 8% in recent sessions, while Brent crude advanced about 17% across five trading days.

Higher oil prices often translate into stronger inflation expectations, which in turn complicate the Federal Reserve’s ability to cut interest rates. For Circle, in terms of the Mizuho analysts’ perspective, that dynamic matters because the company generates most of its revenue from interest earned on reserves backing the USDC stablecoin.

Circle earns interest primarily from short-term U.S. Treasuries and other low-risk assets held to support USDC circulation. When rates remain elevated, those reserves produce larger yields and contribute more directly to the firm’s income.

Mizuho estimated that reduced expectations for Fed rate cuts could add roughly 1% to Circle’s revenue projections for both 2026 and 2027. The analysts also pointed to a rising probability that the Fed may avoid rate reductions entirely next year.

At press time, data from the CME Fedwatch tool shows the extreme upside potential of no rate cuts in 2026 has roughly doubled in recent weeks. For a company whose profits lean heavily on interest income, Mizuho believes that scenario offers a helpful boost. The tool currently shows that the chances of no change happening at the March 18 meeting stand at 97.3%.

Markets appeared to take notice. Circle shares jumped more than 24% over the week leading into the Mizuho analyst’s note and gained another 6% on the day it circulated. On Wednesday, shares are up 4% a few hours before the closing bell.

The stock traded between roughly $101 and $103 during the latest session, reaching levels not seen in about four months. Presently, the rally has pushed shares beyond Mizuho’s newly minted price target.

The recent climb builds on momentum from Circle’s fourth-quarter 2025 earnings report released in late February. At that time, the company posted results that exceeded expectations, triggering a sharp rebound after months of heavy losses.

Circle’s stock had previously fallen nearly 80% from highs reached in 2025 before staging the latest recovery. Analysts partly attributed the quick rebound to a short squeeze as investors repositioned around the earnings report.

Even with the improved outlook, analysts continue to flag long-term risks. Stablecoin regulation is evolving across major markets, and additional entrants could pressure margins if the sector becomes more competitive.

For now, however, Circle remains tightly linked to macroeconomic forces. Oil prices, inflation data and signals from the Federal Reserve may matter almost as much as developments inside the company itself.

• Why did Circle’s stock rise this week? Circle shares gained after Mizuho raised its price target to $100 and cited higher interest rate expectations supporting revenue from USDC reserves.
• How does Circle make money from USDC? Circle earns interest on U.S. Treasury and cash reserves that back the USDC stablecoin.
• Why do higher interest rates help Circle? Elevated rates increase the yield on reserves backing USDC, boosting Circle’s interest income.
• What risks could affect Circle’s long-term growth? Growing competition and evolving stablecoin regulations could compress profit margins over time.

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