$BTC $TRUMP
American Bitcoin (ABTC) Crashes 50% Despite Bitcoin Rally
BTC Status: Bitcoin climbed from $86,286 (Dec 2) to $93,324, up ~8%, due to improved macro conditions and Vanguard opening crypto ETF access.
ABTC Status: American Bitcoin (Trump-linked miner) plunged up to 50% intraday, settling ~35% lower. Shares hit by first major lock-up expiry, releasing pre-merger/private-placement stock.
Reason for Divergence:
BTC vs ABTC: Bitcoin’s supply is stable; ABTC’s float surged suddenly, flooding the market.
Equity & Political Risk: ABTC carries Trump-linked and small-cap equity risks, unlike BTC.
Leverage & Miner Risk: ABTC is a leveraged miner stock; lock-up expiry amplified concerns.
Takeaway: “Proxy trade” failed—ABTC does not track BTC closely in short term; it reacts to stock-specific events, not Bitcoin moves.
