COIN and CRCL Stock Outlook as JPMorgan CEO Warns of Elevated Leverage Amid S&P 500 Pullback

Coinbase (NASDAQ: COIN) and Circle (NYSE: CRCL) stocks are in focus after the CEO of JPMorgan, Jamie Dimon, warned that the leverage in the market is “pretty high.” His warning comes as the S&P 500 index retraces from its all-time high of 7,798 points seen on August 5.

Jamie Dimon Warns of High Market Leverage as S&P 500 Pulls Back

Dimon was speaking in an interview with CNBC, where he said that investors should be careful before trading with leverage because that could disrupt the stock market, considering that the current amount of leverage is elevated.

“When you have that, you do have a higher chance that somebody will disrupt the market in a quick way, and people get rattled over it,” Dimon said.

His remarks come after the S$P 500 index rose to 7,798 points on August 5 after easing geopolitical tensions drove a risk-on sentiment. But the index did not close at this record high and instead dropped by 0.71% to close trading at 7,723 points.

COIN Stock, which is listed on the index, also dropped by 0.56% on August 5 to close trading at $149.

Meanwhile, CRCL stock gained by 0.047% to close trading at $63, with the gains coming despite the company posting a revenue of $701 million in Q2 2026, which was lower than the $712 million in revenue that Wall Street expected.

COIN Stock Price Rebounds From Multi-Week Lows

The price of COIN stock dropped to $139 on July 31 but since then, Coinbase shares have gained by 7%.

The 7% gain comes despite Coinbase reporting that it made a revenue of $1.22 billion in Q2 2026, which was also lower than the $1.29 billion that analysts expected.

But COIN stock needs to close above the resistance at $153 for three = straight days to suggest that the uptrend is sustainable.

Still, the RSI reading of 43 suggests that the momentum is favoring bears, and this could hinder COIN stock’s move above $153. If it fails to close above $153, the downtrend could persist, and the shares could retest the July 31 low of $139.

The drop to $139 could occur if the S&P 500 index continues to drop and draws sellers to the market, or the high leverage in the stock market unwinds after the recent warning by JPMorgan’s CEO.

CRCL Stock Rises Despite Mixed Earnings

CRCL stock price has posted gains for three straight trading days, with these gains mirroring the 7% rise posted by COIN since July 31. The volume histogram bars that have been green for those days suggest that the gains came from an increase in buying pressure.

The AO bars that are green and growing in length also suggest that the bearish momentum is becoming weak. The MACD line that is creating higher lows also supports that bears are losing their grip.

CRCL stock needs to close above the resistance at $63 to confirm that the upward trend is strong. The shares closed above this obstacle at $63 three times in July, with a brief rally occurring each time the stock closed above $63.

The gains could last if buyers frontrun an upcoming catalyst for these shares after Circle revealed that its Arc blockchain created in partnership with BlackRock and Visa will go live on September 16.

Still, the ongoing gains by both COIN and CRCL stock could fizzle out if the current high leverage condition deters buyers and the price of Circle shares closes below the psychological support of $60 for three straight days.