Crypto stocks deepen slump as Coinbase, Circle trail U.S. tech peers

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Crypto stocks trail tech peers

Highlights

Coinbase and Circle shares are down 69% and 72% from all-time highs, underperforming Oracle, Salesforce, Netflix, Palantir, and the S&P 500 Index, which is only down 3.5%.
Crypto sector sentiment worsens as Bitcoin falls below $60,000, extending losses to over 54% since October peak, while Ether trades 69% below last year's high at around $1,500.
Coinbase Q1 revenue falls 21% quarter-over-quarter, missing expectations with a $1.49 per share loss versus expected $0.27 profit, and 21Shares cuts its 2026 outlook citing persistent four-year Bitcoin cycle.

Market selloff widens gap with tech peers

As reported by The Kobeissi Letter, shares of Coinbase and Circle are down 69% and 72%, respectively, from their all-time highs, a steeper retreat than the 48% to 57% declines recorded by Oracle, Salesforce, Netflix and Palantir. By comparison, the large-cap S&P 500 Index is down just 3.5% from its recent peak.

The broader pullback in technology stocks reflects concerns that advances in artificial intelligence could disrupt existing business models across parts of the sector. Semiconductor shares have generally held up better despite volatility, while crypto-related stocks remain under pressure amid weakness in digital asset markets and uneven progress on comprehensive crypto market structure legislation in the U.S.

Negative sentiment toward the sector has intensified after Bitcoin falls below $60,000 this week, extending its decline to more than 54% from its October peak. Ether also comes under heavy selling pressure, recently trading around $1,500, roughly 69% below last year's high.

Earnings pressure and weaker 2026 outlook

Bear market conditions are also weighing on corporate earnings. Coinbase reports first-quarter results that miss Wall Street expectations, with revenue down 21% from the previous quarter and a loss of $1.49 per share, compared with analysts' expectations for a profit of $0.27 per share.

The prolonged downturn has also prompted 21Shares to lower its expectations for 2026 in its midyear outlook. The asset manager says institutional adoption continues to strengthen, particularly in stablecoins, tokenization and prediction markets, but argues that Bitcoin's four-year market cycle remains the dominant force behind crypto prices.

According to 21Shares, rising institutional ownership helps moderate Bitcoin's drawdowns but does not fundamentally alter its cyclical behavior. The firm says Bitcoin's cycle is evolving, but has not broken, stepping back from its earlier view that the four-year cycle had become obsolete.

In our earlier analysis of Coinbase (COIN), we noted that the stock rebounded modestly after opening under pressure, largely due to oversold technical conditions and CEO Brian Armstrong’s upbeat updates on the Base platform. Despite those positives, the broader picture remained cautious: COIN was still trading below key moving averages, with weak momentum signals and a range-bound outlook dominated by downside risk.

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