# Circle Position Liquidation Record and Analysis of Reasons

## Trading Operations:
Liquidated Circle positions in two batches at prices of 83 and 112.

## Personal Reasons for Liquidation (All subjective views):
1. **Disconnect between narrative and reality:**
Circle's recent price surge has been driven by the AI Agent payment narrative, but AI Agent payment is still in a very early stage. USDC issuance volume being truly driven by AI Agent transaction volume is impossible within less than 2-3 years. What's currently being traded is optimistic expectations about AI.

2. **Limited market positioning:**
Stablecoin payments are only a niche market for AI Agents. Stablecoin payments will primarily be used in cross-border scenarios, while for AI Agents, local payment scenarios represent the largest market opportunity. The most reasonable approach for local payments is combining fiat currency + local applications. Cross-border Agent payment scenarios are not the primary problem being solved currently.

3. **Valuation too high:**
Circle's current market cap of $28 billion is too expensive compared to net profits exceeding $100 million annually. I believe the current price already reflects the valuation when USDC issuance volume grows 10x.