Circle Internet Corp. shares plunged 5.05% in intraday trading Wednesday, as a bearish analyst note and fears over a new stablecoin alliance weighed heavily on the stock.

Bernstein cut its price target on Circle to $140 from $190, citing the threat from the Open USD consortium, which the firm believes has hammered investor sentiment. The analyst noted that Circle’s second quarter was broadly flat, with USDC supply ending Q2 at roughly $73 billion, down from $77 billion in Q1. Consequently, Bernstein slashed its end-of-2026 USDC supply estimate by 37% to $83 billion and its 2028 figure by 40% to approximately $170 billion, trimming its 2026 adjusted EBITDA forecast by 12% to $602 million.

Despite the reduced target, Bernstein maintained its Outperform rating, arguing that the consortium threat will fade. The firm pointed to evidence that the alliance lacks real cohesion, with a Samsung official stating there were no formal consultations and Visa management affirming a multi-coin strategy. Nevertheless, the stock continued to press into its last support zone before the post-IPO base breaks entirely, with all major moving averages sitting overhead as resistance.