According to ChainCatcher citing Cointelegraph, amid the widespread decline in tech stocks, crypto-related equities have suffered even more severe losses, with the divergence from the broader market continuing to widen. Coinbase (COIN) and Circle (CRCL) have fallen 69% and 72% from their respective all-time highs, far exceeding the 48%-57% retreat of mainstream tech stocks like Oracle, Salesforce, Netflix, and Palantir. In contrast, the S&P 500 has only declined 3.5% from its recent peak.
Crypto Stocks Far Outpace Tech Declines
Breaking down the numbers, crypto stocks are the hardest hit in this correction. Coinbase is off 69% from its high, Circle off 72%, while tech giants Oracle, Salesforce, Netflix, and Palantir have seen drawdowns between 48% and 57%. The S&P 500, meanwhile, is down just 3.5% from its recent high, highlighting the massive divergence between crypto assets and mainstream markets.
Earnings and Market Dual Pressure
On the fundamental side, Coinbase's first-quarter results fell well short of Wall Street expectations. Revenue declined 21% quarter-over-quarter, with an earnings per share loss of $1.49, versus analyst estimates of a $0.27 profit. Market sentiment has deteriorated further: Bitcoin dropped below $60,000 this week, down over 54% from its October peak; Ether fell to around $1,500, down approximately 69% from its 2025 high.
21Shares, in its mid-year outlook report, downgraded expectations for the crypto market in 2026, stating that digital asset price performance has significantly lagged behind industry fundamentals. The firm noted that institutional adoption continues to deepen, with stablecoins, asset tokenization, and prediction markets all maintaining robust growth momentum, but the Bitcoin four-year market cycle remains the dominant force in price action. The report also acknowledged a previous misjudgment — "Bitcoin's cycle is evolving, but not broken" — retracting its earlier view that the four-year cycle had become obsolete.
Analysts believe the deep drawdown in crypto stocks reflects the overlapping of triple pressures: the overall weakness in the digital asset market, uncertainty over the progress of U.S. crypto market structure legislation, and the potential impact of AI technology on existing business models.