US investment bank Compass Point has downgraded its investment opinion on Circle, the issuer of the USDC stablecoin, from Neutral to Sell. The firm also lowered its target price to $130, citing increasing competition within the stablecoin market as a primary concern. Several factors contributed to this decision. Compass Point anticipates reduced revenue for Circle due to expected interest rate cuts by the US Federal Reserve. Lower interest rates generally decrease the yield Circle earns on its USDC reserves. Additionally, the bank predicts a decline in interest from retail investors, further impacting Circle's profitability. The stablecoin landscape is becoming increasingly crowded, with new players and established cryptocurrencies vying for market share. This intensifying competition puts pressure on USDC's market dominance and potentially reduces its long-term growth prospects. ```