This week, although the price of Bitcoin (BTC) has slightly stabilized and rebounded, the days for this cryptocurrency reserve company have not been easy. On Tuesday (December 2), American Bitcoin (ABTC), supported by the Trump family, plummeted over 50% in less than 30 minutes after the market opened, triggering multiple trading halts, and ultimately closed at $2.33, down 35% from the previous trading day, slightly rebounding to $2.39 in Wednesday's trading.
This sharp fluctuation has made American Bitcoin a typical case of the turmoil in the cryptocurrency market by the end of 2025, and it symbolizes the series of failures of multiple projects that the Trump family has vigorously promoted in the digital asset field over the past year. Despite the overall cryptocurrency market significantly weakening in the past two months, Bitcoin, as the leading asset, has only dropped by about a quarter.
The collapse of ABTC's stock price is neither coincidental nor merely a matter of market sentiment; it is the result of multiple structural factors overlapping and being released. First, its equity structure is highly concentrated, with early investors and related parties holding a high proportion of shares, leading to a weak circulation of the company's stock; when the originally restricted locked shares were simultaneously unlocked, a large number of stocks suddenly flooded the market, creating strong selling pressure.
Second, this event occurred during a "crypto winter" in the overall cryptocurrency market. Although the price of Bitcoin has slightly stabilized and rebounded, it had previously accumulated a drop of over 20% in the past few weeks, causing the overall market risk appetite to plummet. As a result, investors have become more cautious about any assets related to cryptocurrency, especially those linked to political figures and celebrities, making related projects more likely to become the focal point of capital withdrawal.
Finally, trust and risk premiums are also at play. The connection between ABTC and the Trump family makes it not just an ordinary mining company, but a concept stock with a clear "political/celebrity + crypto" label. When the sell-off wave arrives, this label instead becomes a catalyst for accelerated exit.
According to the company's latest third-quarter financial report, it successfully turned a profit in the third quarter, and its Bitcoin reserves have significantly increased. The report shows that American Bitcoin's third-quarter revenue reached $64.2 million, a substantial increase from $11.6 million in the same period last year. The company's gross margin improved from 49% in the previous quarter to 56%, indicating a significant improvement in profitability. The company recorded a net profit of $3.5 million for the quarter, compared to a loss of $600,000 in the same period last year. As of December 4, the company's Bitcoin reserves amounted to 4,367 coins, valued at approximately $406.1 million based on the current price of around $93,000 per coin.
Eric Trump previously stated during the earnings call, "Since going public on Nasdaq, we have added over 3,000 Bitcoin reserves, continuously ranking among the world's leading publicly listed Bitcoin holding companies."
Market analysis suggests that the Trump administration's proposal to make the U.S. a global leader in the cryptocurrency industry and its commitment to implementing more lenient regulatory policies are important factors driving companies to expand their digital asset reserves.
Currently, the cryptocurrency projects involving the Trump family are experiencing a noticeable "halo decay period." Earlier this year, meme coins named after "Trump" and "Melania" saw explosive growth during the hottest market conditions, with daily trading volumes rapidly expanding. However, once the hype subsided, these tokens experienced widespread deep corrections, with many coins dropping over 80% or even 90% from their peaks.
Additionally, family-related businesses and investment paths have also faced market tests. The crash of ABTC is a typical case. The market generally believes that the business models of such projects still heavily rely on external attention rather than core technology or stable revenue, making them particularly vulnerable during periods of rapid capital contraction.
Meanwhile, the more "formalized" cryptocurrency business that the Trump family is trying to promote is also facing challenges. For example, World Liberty Financial emphasizes creating a token system "backed by real assets" in its promotion and plans to launch a more complete product line in 2026, attempting to shift from the meme coin narrative to a compliant fintech narrative. However, based on the currently available product rhythm and technical documents, the project is still in the early planning stages, lacking sufficient development details and implementation progress, making it difficult for the market to establish clear expectations.
Hilary Allen, a law professor at the Washington College of Law, believes that the Trump family's involvement is a double-edged sword for the project's "legitimacy." She stated that Trump himself has launched several cryptocurrency-related projects, but many have quickly depreciated. If these projects originally hoped to leverage the Trump family's influence to enhance credibility, "that clearly backfired."
Related: Bitcoin (BTC) has added $732 billion in capital in this cycle, and the market structure has changed.
Original article: “ABTC Crash, Meme Coin Fade: The Trump Family's Crypto Myth is Fading”
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