Coinbase, Circle, and Robinhood shares have fallen sharply, trading 40% to 56% below their highs even as the S&P 500 remains near record levels. This divergence highlights what analysts describe as a stealth bear market, where gains are concentrated in a small number of stocks while damage accumulates elsewhere.
Since March 30, just 10 stocks have driven 70% of the S&P 500's gains. This concentration masks significant losses in crypto-linked equities and other technology companies. Coinbase ranks third among technology stocks in bear market territory, down 56%, followed by Circle at 44% and Robinhood at 40%.
Other technology stocks showing similar declines include AppLovin at 65%, CoreWeave at 57%, Western Digital at 52%, Oracle at 50%, and Arm Holdings at 49%. Nvidia alone contributed 13% of the index's gains, while Micron and Alphabet, despite ranking among top contributors, sit 24% and 28% below their highs respectively.
Circle, which issues USD Coin and earns most revenue from interest on reserves, saw its shares fall approximately 11% intraday in September after a Senate CLARITY Act vote stalled a crypto market structure bill. Robinhood posted record third-quarter revenue of $1.4 billion, yet diluted earnings per share fell 16% year over year.
Coinbase is scheduled to report third-quarter results, with revenue expectations near $1.2 billion representing a 36% drop from a year earlier. Analysts are forecasting a loss for the quarter. Consumer transaction revenue fell 20% year over year to $452 million in the second quarter, and spot trading volume dropped 25% from the first quarter.
Bitcoin has struggled to hold its rally above $80,000, repeatedly dipping below the level. Market expectations shifted significantly in mid-October, when data showed three additional Federal Reserve rate hikes priced by June 2027, in contrast to three rate cuts expected at the start of 2026.
