Crypto Equities Down 70% — Outpace Tech Plunge Amid Bear Market
By John Nada·Jun 28, 2026·4 min read
Crypto stocks drop 70%, outpacing tech amid market sell-off. Institutional adoption grows, yet cyclicality persists.
Crypto stocks are plummeting faster than tech giants.
The financial landscape for crypto-focused companies is bleak. Shares of Coinbase and Circle have nosedived by 69% and 72% from their all-time highs, respectively. These figures starkly outstrip the losses felt by big tech stalwarts like Oracle and Netflix, whose shares are down between 48% and 57%, according to The Kobeissi Letter. It seems the digital equity space is taking a harsher beating amid a broader tech sell-off.
A broad selloff in technology stocks has weighed even more heavily on crypto-focused companies, highlighting a growing divergence between digital asset equities and the broader US stock market. By comparison, the large-cap S&P 500 Index has retreated just 3.5% from its recent high. This stark contrast points to a significant vulnerability in the crypto sector, which seems to be more sensitive to shifts in market sentiment.
Examination of tech stocks reveals a sector grappling with fears over AI's disruptive potential. The pullback in technology stocks reflects mounting concerns that advances in artificial intelligence could disrupt existing business models across parts of the sector. Yet semiconductors have managed to weather the storm better, showing resilience amidst market ripples. Despite bouts of volatility, semiconductor stocks have generally held up better, while crypto-related equities have remained under pressure amid broader weakness in digital asset markets and uneven progress on comprehensive crypto market structure legislation in the United States.
Negative sentiment doesn't help as Bitcoin crashes below $60,000, decreasing over 54% from its October peak, with Ether also losing significant ground. Bitcoin's decline has extended to more than 54% from its October peak, and Ether has also come under heavy selling pressure, recently falling to around $1,500, roughly 69% below last year's high. These figures highlight the substantial volatility and pressure facing digital assets, exacerbating the woes of companies heavily invested in these markets.
Coinbase's recent financial results underscore these struggles. It failed to meet Wall Street's expectations, reporting a 21% revenue drop quarter-on-quarter and a loss of $1.49 per share, when analysts had hoped for a profit. The company posted a loss of $1.49 per share, versus analysts' expectations for a profit of $0.27 per share. This is a stark reflection of the bearish conditions pressing on crypto markets and their impact on corporate earnings.
Sequencer Bug Halts Coinbase's Base Network Twice in Two Days
Base's network faced two outages due to a sequencer bug.
The crypto market’s prolonged downturn has prompted analysts at 21Shares to lower their expectations for 2026, arguing that digital asset prices have significantly underperformed the industry's underlying fundamentals. Despite strong institutional adoption, particularly in stablecoins, tokenization, and prediction markets, the asset manager argued that Bitcoin’s four-year market cycle remains the dominant force driving crypto prices.
According to the report, growing institutional ownership has helped moderate Bitcoin’s drawdowns but has not fundamentally altered its cyclical behavior. Bitcoin’s price action this year suggests the four-year cycle remains intact. 21Shares noted, 'Bitcoin’s cycle is evolving, but it has not broken yet,' walking back its earlier forecast that the four-year cycle had become obsolete.
Digital asset equities are floundering more than their tech counterparts. This growing divergence between digital asset equities and the broader market highlights the unique challenges facing the crypto sector. The lack of clear crypto legislation in the U.S. adds another layer of uncertainty, further complicating the outlook for these companies.
However, that doesn't mean they're doomed. If history holds, crypto’s cyclical nature might just provide a lifeline. Despite the current downturn, the cyclical nature of the crypto market suggests that a rebound could be on the horizon. The evolving nature of Bitcoin's cycle, as noted by 21Shares, implies that while the pattern remains, there is room for change and adaptation.
Institutional adoption continues to strengthen, which could play a critical role in stabilizing the market. The increased interest in stablecoins, tokenization, and prediction markets demonstrates a growing acceptance of digital assets, even as prices remain volatile. This trend could provide a foundation for future growth, potentially mitigating some of the risks associated with the current downturn.