Stealth Bear Market Hits Crypto Stocks as Coinbase, Circle, Robinhood Fall 40-56%

Coinbase (COIN), Circle (CRCL), and Robinhood (HOOD) shares commerce 40% to 56% beneath their highs. The S&P 500 sat close to a file in October, a cut up the Kobeissi Letter calls a stealth bear market.

Since March 30, 10 shares have pushed 70% of the S&P 500’s positive factors. That focus hides harm elsewhere, together with crypto-linked equities, whose holders carry losses the headline index doesn’t present.

Why Are Crypto Stocks Stuck in a Stealth Bear Market?

Kobeissi lists 20 know-how shares in bear market territory, led by AppLovin at 65%. Coinbase ranks third at 56%, with Circle at 44% and Robinhood at 40%.

Nvidia alone provided 13% of the index’s achieve. However, Micron and Alphabet additionally rank among the many prime contributors whereas sitting 24% and 28% beneath their highs.

Mid-October Kobeissi data confirmed three extra Fed fee hikes priced by June 2027. In distinction, markets anticipated three cuts at the beginning of 2026.

Circle (CRCL) points USD Coin (USDC) and earns most of its income from curiosity on reserves. Its shares fell about 11% intraday in September after a Senate CLARITY Act vote stalled the crypto market construction invoice.

Robinhood posted file third-quarter income of $1.4 billion, but diluted earnings per share fell 16% yr over yr.

Can Bitcoin Reclaim $80,000 Before Coinbase Reports?

Meanwhile, Bitcoin (BTC) is struggling to carry its rally above $80,000 and retains dipping beneath the extent. A US Treasury bond buyback that stuffed its $6 billion cap on Tuesday did not raise the worth.

Coinbase reports third-quarter results after the shut on Thursday. Revenue expectations close to $1.2 billion would mark a 36% drop from a yr earlier, with analysts forecasting a loss.

Consumer transaction revenue fell 20% yr over yr to $452 million within the second quarter. In addition, spot buying and selling quantity dropped 25% from the primary quarter.

Economist Peter Schiff in contrast slim breadth final month to 1973 and 1999-2000, which he mentioned preceded 50% drops, Stocktwits reported.

Kobeissi expects the alternative, a pointy rally if power and fee strain ease. Still, that consequence would depend upon breadth widening past the ten shares carrying the index.

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