The recent downturn in crypto markets has opened a compelling buying opportunity for both Coinbase and Circle, according to a Monday report from investment bank William Blair, which said the core investment cases for USDC and bitcoin remain intact.

William Blair described Coinbase’s (COIN) latest decline as an “air pocket” rather than a cause for concern, reiterating its outperform rating and encouraging investors to take advantage of the pullback. Coinbase shares were up 2.6% in early trading at $246.53.

The firm issued a similar message for Circle (CRCL), which is down nearly 80% from its 52-week high despite USDC’s stable market cap. Given the close alignment between the two companies through their shared exposure to USDC, the bank expects their stocks to move largely in tandem. It characterized Coinbase as the broader crypto access point and Circle as the more direct play on USDC’s expansion, particularly in cross-border B2B payments.

Analysts Andrew Jeffrey and Adib Choudhury said bitcoin’s sharp decline doesn’t undermine their outlook. Instead, they attributed the volatility to structural factors in a still-developing market — including concentrated ownership and a wave of new ETF entrants — that amplify price swings. In their view, the long-term thesis remains intact, with deeper liquidity and clearer regulation eventually smoothing out bitcoin’s path toward mainstream adoption.

While short-term price weakness could pressure Coinbase’s trading revenue, the bank noted that the company continues to gain spot-market share in the U.S. and grow its global derivatives platform, providing diversification during slower trading periods. With about one-third of its cost base variable, Coinbase should also be able to protect margins while continuing to invest in its business.

The report further pointed to the strength of Coinbase’s Subscription & Services revenue, now accounting for roughly 40% of total revenue and supported by a steady $74 billion USDC supply despite the broader market slump. William Blair said it remains confident in its $777 million fourth-quarter estimate, citing contributions from USDC rewards and the expectation that staking revenue will benefit from higher on-chain yields and reduced redemptions during risk-off periods.