Coinbase fell 0.6%, Circle gained after Dimon flagged high leverage. COIN resistance at $153, CRCL at $63. Arc blockchain catalyst ahead.
Jamie Dimon said leverage in the stock market is "pretty high" and warned it could trigger a sudden disruption. The S&P 500 index touched an intraday record of 7,798 on August 5 before closing 0.71% lower at 7,723. Coinbase Global shares fell 0.56% that session to $149. Circle Internet Group shares added 0.047% to $63.
Dimon, JPMorgan Chase's chief executive, told CNBC that elevated leverage creates a "higher chance that somebody will disrupt the market in a quick way, and people get rattled over it." The interview came as the S&P 500 pulled back from its all-time high.
COIN stock had dropped to $139 on July 31. It has recovered 7% since that low. Coinbase reported second-quarter revenue of $1.22 billion, below the $1.29 billion analysts expected. The stock faces resistance at $153. A close above that level for three consecutive sessions would signal a sustainable uptrend, CoinGape noted. The relative strength index reading of 43 points to bearish momentum. If COIN fails to cross $153, a retest of the $139 low is possible. That scenario could play out if the S&P 500 keeps falling or leveraged positions unwind after Dimon's remarks.
CRCL stock has risen for three straight trading days. Volume histogram bars turned green over that period, suggesting buying pressure rather than short covering. The Awesome Oscillator bars are green and expanding, indicating weakening bearish momentum. The MACD line is carving higher lows. Circle posted $701 million in Q2 revenue, below the $712 million consensus. The stock needs to close above resistance at $63 to confirm the upward trend. It broke above $63 three times in July, each time triggering a brief rally.
Circle's upcoming catalyst is the Arc blockchain, built with BlackRock and Visa, which goes live on September 16. Front-running on that event may be supporting the stock. Gains on both COIN and CRCL could fizzle if the elevated leverage condition deters buyers. A close below $60 on CRCL for three consecutive days would signal a failed breakout.
AlphaScala rates JPMorgan Chase at 66/100 (Moderate), Coinbase at 30/100 (Weak), and Circle at 28/100 (Weak). The divergence in stock reactions reflects different investor expectations for the two crypto-adjacent firms.
For more on the broader crypto market and its stocks, see our crypto market analysis and the COIN stock page and CRCL stock page.
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