The S&P 500 hovered near record territory in October, but several crypto-linked stocks remained well below their highs. Coinbase, Circle and Robinhood were down 40% to 56% from their respective peaks, underscoring how the index’s strength has not extended across the broader market. Market commentary firm Kobeissi Letter described the gap between the index and individual stocks as a “stealth bear market.”
Coinbase, Circle and Robinhood are down 40% to 56%
Among 20 technology stocks in bear-market territory listed by Kobeissi, AppLovin had the steepest decline, falling 65% from its high. Coinbase was down 56%, the third-largest drop on the list, while Circle fell 44% and Robinhood 40%. These figures measure declines from each stock’s peak, not their performance relative to the S&P 500 over the same period.
The index’s gains have also been concentrated in a small group of companies. Since March 30, just 10 stocks accounted for 70% of the S&P 500’s advance, with Nvidia alone contributing about 13%. The index’s proximity to a record therefore does not mean that most constituents have risen; some publicly traded companies tied to the crypto sector continue to face substantial declines.
A narrow rally can coexist with steep stock declines
Not all of the index’s leading contributors are trading near their highs. Micron and Alphabet were among the biggest contributors to the S&P 500’s gains, yet their shares remained 24% and 28% below their respective peaks. Index gains, individual-stock drawdowns and outsized contributions from a handful of large companies can all occur at the same time.
For investors, this concentration means headline index performance may obscure significant differences among stocks. The declines in crypto-linked shares have come while the S&P 500 is near record levels, illustrating that the broad market gauge alone may not capture the paper losses faced by holders of those companies.
Rate expectations and Circle’s interest income
Data published by Kobeissi in mid-October showed that markets were then pricing in three cumulative Federal Reserve rate hikes by June 2027. In early 2026, expectations had instead pointed to three cumulative rate cuts. The shift in rate expectations is relevant macroeconomic context for companies that rely on interest income, but the available information does not quantify any link between the change and the three stocks’ declines.
Circle issues USDC, a dollar-backed stablecoin, and most of its revenue comes from interest on reserve assets. In September, Circle shares fell about 11% intraday after a Senate vote on the CLARITY Act, a bill addressing crypto market structure, stalled. The episode shows that regulatory developments can be one factor affecting the company’s share price, though its decline should also be considered alongside broader market conditions and its business performance.
The figures show deep drawdowns at three crypto-linked companies alongside an S&P 500 near its highs. For market participants tracking listed crypto businesses, individual share performance, interest-rate expectations and regulatory developments are separate factors to assess; the index level alone does not describe how these stocks have performed.