Key Takeaways: Crypto equities have posted steeper losses than major technology stocks as Coinbase and Circle deepen their declines from all-time highs.
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Coinbase, Circle fall 69%, 72% as crypto stocks lag S&P 500
Crypto equities have posted steeper losses than major technology stocks as Coinbase and Circle deepen their declines from all-time highs.
A broad selloff in technology stocks has weighed more heavily on crypto-focused companies, with Coinbase (COIN) and Circle (CRCL) falling 69% and 72% from their all-time highs, data from The Kobeissi Letter show.
"Coinbase and Circle have posted steeper losses than Oracle, Netflix and Salesforce, highlighting the widening gap between crypto equities and the broader market," The Kobeissi Letter said in a June 27 report.
The S&P 500 Index has retreated just 3.5% from its recent high. Oracle, Salesforce, Netflix and Palantir are down between 48% and 57% from their peaks. Bitcoin fell below $60,000 this week, extending its decline to more than 54% from its October peak, while Ether dropped to around $1,500, roughly 69% below last year's high.
The divergence between crypto equities and the broader market has intensified as Coinbase reported first-quarter results that missed Wall Street expectations. Revenue fell 21% from the previous quarter, and the company posted a loss of $1.49 per share versus analysts' expectations for a profit of $0.27 per share.
The prolonged downturn has prompted analysts at 21Shares to lower their expectations for 2026, arguing that digital asset prices have significantly underperformed the industry's underlying fundamentals. In its midyear outlook, the asset manager said institutional adoption continues to strengthen, particularly in stablecoins, tokenization and prediction markets. However, Bitcoin's four-year market cycle remains the dominant force driving crypto prices.
"Bitcoin's cycle is evolving, but it has not broken yet," 21Shares said, walking back its earlier forecast that the four-year cycle had become obsolete. Growing institutional ownership has helped moderate Bitcoin's drawdowns but has not fundamentally altered its cyclical behavior, according to the report.
The pullback in technology stocks reflects mounting concerns that advances in artificial intelligence could disrupt existing business models across parts of the sector. Semiconductor stocks have generally held up better despite bouts of volatility, while crypto-related equities have remained under pressure as digital asset markets weakened and progress on comprehensive crypto market structure legislation in the United States remained uneven.
For crypto equity investors, the path forward hinges on two variables: whether Bitcoin can reclaim the $60,000 level as a support floor and whether US lawmakers advance market structure legislation that could restore confidence in digital asset companies. Until then, the divergence between crypto stocks and the resilient S&P 500 is likely to persist.
This article is for informational purposes only and does not constitute investment advice.
[1] Coinbase, Circle Deepen Crypto Stock Losses Despite Resilient S&P 500[2] Coinbase, Circle underperform Big Tech as crypto stock slump deepens[3] Bitcoin breaks below $60K and is now down over 50% from its all-time high[4] Bitcoin drop to $58K brings out bears: Is BTC's next stop below $50K?[5] Bitcoin bounces off new 2026 price lows: Will US stock weakness push BTC lower?
