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Sohrab Khawas
Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Aug 05, 2025 09:59 UTC
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Why Crypto Stocks Are Falling And Smart Money Isn’t Rushing In Yet!
Crypto stocks like Coinbase and Metaplanet have dropped over 30% from recent highs.
10x Research warns the decline reflects deeper market doubts, not just short-term correction.
Smart investors are avoiding these stocks as valuations still appear too high overall.
Despite pullbacks, investors believe prices could fall further before becoming worth buying again.
Crypto stocks were once the stars of the market. But right now, they’re not shining so bright. After months of excitement, many of these stocks such as Coinbase, Circle, Metaplanet, have dropped sharply as much as 30% to 50%.
And the real question is: why aren’t smart investors buying the dip?
Warning That Played Out
According to a detailed report by 10x Research, the current drop in crypto stocks is not just a quick pullback. It reflects a deeper change in how investors are thinking about the true value of these companies.
Stocks connected to the crypto world, like Coinbase, Circle, Kakaopay, and Metaplanet, were rising fast not long ago. Many investors who bought these stocks at their peak are now stuck with heavy losses.
- Metaplanet has dropped 38%
- Kakaopay is down 28%
- Circle has slipped 21%
Because of this, they’re being more careful and aren’t jumping back in right away.
This cool-off is more than just a short-term pause, it’s a shift in how people are valuing crypto companies. Prices went up too fast, and now the market seems to be correcting those overly high expectations.
Valuations Still Look High
On the other hand 10x research noted that, one big reason smart money is staying away is the Valuations are still very high. Even after the recent drops, many of these crypto stocks still look expensive. For example, Circle is trading at a forward price-to-earnings (P/E) ratio of 153x.
That means investors are paying 153 times what the company is expected to earn in the future
For Coinbase, the number is 102x, and for Robinhood, it’s 69x. These are high numbers compared to many other sectors in the market.
Moment to Wait and Watch
Meanwhiel, this doesn’t mean crypto stocks are finished. So even though prices have come down, many investors think they could still fall more before becoming a good buy.
But right now, smart money is staying patient.
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FAQs
Crypto stocks like Coinbase and Metaplanet dropped 30-50% due to overvaluation concerns, with Circle trading at 153x P/E despite recent declines.
Analysts advise caution – current valuations remain high and the pullback may continue before reaching attractive entry points for long-term investors.
10x Research suggests this reflects a fundamental valuation shift, not just short-term volatility, as markets correct overly optimistic crypto projections.
Yes 
No 
