The plummeting trend of crypto stocks intensifies, with Coinbase and Circle's stock performance trailing large-cap tech stocks.

Jinse Finance reported on June 28 that amid a broad decline in tech stocks, cryptocurrency-related stocks suffered particularly 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% to 57% pullbacks of mainstream tech stocks such as Oracle, Salesforce, Netflix, and Palantir; in contrast, the S&P 500 has only dropped 3.5% from its recent peak.

At the fundamental level, Coinbase's first-quarter results significantly missed Wall Street expectations, with revenue down 21% quarter-over-quarter and a loss per share of $1.49, compared to analysts' previous expectations of earnings per share of $0.27. Bitcoin fell below $60,000 this week, down more than 54% from its peak in October; Ethereum also dropped to around $1,500, down about 69% from its high last year, as market sentiment continued to deteriorate.

In its mid-year outlook report, 21Shares lowered its expectations for the cryptocurrency market in 2026, stating that digital asset prices have significantly lagged behind industry fundamentals. The firm noted that institutional adoption continues to deepen, and stablecoins, asset tokenization, and prediction markets are all maintaining strong momentum, but Bitcoin's four-year market cycle remains the dominant force driving price trends. The report also admitted a previous misjudgment — "Bitcoin's cycle is evolving but not yet broken" — retracting its earlier claim that the four-year cycle was obsolete.

Analysts believe that the deep pullback in crypto stocks reflects a combination of three pressures: the overall weakness in the digital asset market, the uncertainty surrounding the progress of U.S. crypto market structure legislation, and the potential impact of AI technology on existing business models.