A broad technology selloff is hitting crypto-focused companies especially hard. Shares of Coinbase and Circle have plunged 69% and 72% from their peaks, far outpacing the drawdowns of major tech firms like Oracle and Netflix.
The divergence is stark against the S&P 500, which is down just 3.5% from its recent high. Negative sentiment worsened after Bitcoin fell below $60,000 this week, extending its decline to over 54% from its October peak.
Analysts at 21Shares have lowered their 2026 crypto outlook, arguing that while institutional adoption in stablecoins and tokenization grows, Bitcoin's four-year market cycle remains the primary price driver. They note that growing ownership has moderated drawdowns but not broken the cycle's historical pattern.