Why Smart Money Isn’t Buying Crypto Stocks Yet

Why this report matters

Crypto stocks are unwinding sharply, and some of the most hyped names are now down 30–50% from their highs. Momentum has faded, valuations remain stretched, and volatility is collapsing, leaving many investors stuck with losses and even fewer willing to step back in. From Coinbase to Circle, signals we flagged in late June (here) are now playing out with striking precision. But this isn’t just about short-term corrections—it’s about the deeper repricing of crypto’s equity narrative. Some names may still have room to fall, while others could be nearing high-conviction entry points.

Japan’s Metaplanet is down more than 50% form the top

Main argument

In our June 27 report, we flagged that several crypto-related stocks were losing momentum, prompting our take-profit recommendation on Coinbase and warning that others could follow - notably South Korea’s Kakaopay, Japan’s Metaplanet and US listed Circle. Since then, the damage has been significant: Kakaopay is down 28%, Metaplanet has dropped 38%, and Circle is down 21%. Retail investors who bought near the top are likely sitting on steep losses and may hold off on reinvesting until prices recover, which could slow the broader crypto rally. Valuations remain stretched—Circle still trades at a forward P/E of 153x, compared to 102x for Coinbase and 69x for Robinhood, leaving room for further downside. A 30% correction in Circle, or similarly in Kakaopay with its 128x P/E, would not be surprising.

Market Updates