Crypto-linked equities are experiencing a significant downturn, with shares of Coinbase, Circle, and Robinhood trading between 40% and 56% below their respective highs. Data from The Kobeissi Letter highlights that while the S&P 500 remains near record levels, this is driven by a narrow group of 10 stocks that have accounted for 70% of gains since March 30.
Coinbase shares have declined by 56%, Circle by 44%, and Robinhood by 40%. The broader technology sector is also affected, with 20 stocks currently in bear market territory. Among these, AppLovin leads with a 65% drop, while companies like Oracle and Arm Holdings have seen declines of 50% and 49%, respectively.
Financial performance metrics show mixed results for these firms. Robinhood reported record third-quarter revenue of $1.4 billion, though its diluted earnings per share fell 16% year over year. Coinbase is expected to report third-quarter revenue near $1.2 billion, which would represent a 36% decline compared to the previous year.
Market conditions remain challenging as Bitcoin struggles to maintain a price above $80,000. Despite a US Treasury bond buyback reaching its $6 billion cap, the price of Bitcoin has failed to sustain its upward momentum. Analysts are now monitoring how these macroeconomic pressures and interest rate expectations will impact future market breadth.
