Trump-Backed American Bitcoin Plunges 40% on Heavy Volume, Dragging Hut 8 Lower by 12%

The stock of American Bitcoin Corp, backed by former President Donald Trump, has plummeted nearly 40% following the unlocking of private placement shares. This significant decline highlights the volatility often associated with cryptocurrency investments and raises concerns about the stability of ventures linked to Trump.

American Bitcoin's stock price has plummeted to $2, marking an 86% decline from its peak earlier this year, resulting in a market capitalization drop from $8.6 billion to $1.9 billion. This drastic fall reflects broader trends in the cryptocurrency market, where Bitcoin has also seen significant price fluctuations.

The cryptocurrency industry is facing intensified scrutiny as President Trump's policies come under fire from Democratic senators, who argue that these regulations create a conflict of interest. This situation has escalated with calls for investigations into Trump’s connections with cryptocurrency firms, particularly regarding potential national security threats linked to token sales to foreign entities.

Bitcoin's price has experienced another significant drop, contributing to ongoing volatility in the cryptocurrency market. This decline comes amid heightened speculation and anticipation surrounding a political announcement from Donald Trump, which is expected to impact market sentiment further.