High Market Leverage Warning Triggers Gains in Coinbase and Circle Stocks

JPMorgan CEO Jamie Dimon has warned of elevated leverage in the market, which could disrupt the stock market if investors trade with high levels of leverage.

The warning comes as the S&P 500 index retraces from its all-time high of 7,798 points seen on August 5. The index dropped by 0.71% to close trading at 7,723 points, while COIN stock also declined by 0.56%.

Coinbase (COIN) shares have gained 7% since July 31 despite reporting lower-than-expected revenue of $1.22 billion in Q2 2026. The stock needs to close above the resistance at $153 for three straight days to suggest a sustainable uptrend, but the RSI reading of 43 suggests that the momentum is favoring bears.

Circle (CRCL) shares have gained 7% since July 31 and are expected to gain further as its Arc blockchain goes live on September 16 in partnership with BlackRock and Visa. However, if the current high leverage condition deters buyers, the price of Circle shares could close below the psychological support of $60 for three straight days.