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The Trump Crypto Rollercoaster: From "Greatest Company" to Billion-Dollar Wipeout
Eric Trump's venture into the crypto world, American Bitcoin Corp (ABTC), has seen a dramatic downturn. Shares plummeted nearly 40% in a single day, erasing roughly $1 billion from its market value. This isn't just a bad day at the office; it's a stark illustration of the volatility inherent in crypto, and perhaps, a cautionary tale about mixing family brands with speculative assets.
The decline, triggered by a broader "crypto winter," saw ABTC shares drop to $1.90 after closing at $2.39 the previous day. Trading volume was almost 40 times the daily average, according to Bloomberg data. To put that in perspective, that's like going from a quiet afternoon coffee shop to a stadium concert in terms of activity. The stock peaked at $9.31 on September 9, meaning it has fallen 78% from that high.
Trump's Crypto Play: Hype vs. Harsh Reality
The Trump Brand and Crypto Speculation
Eric Trump, ever the promoter, claimed last month that ABTC handles 2% of the world’s bitcoin supply. His exact words, echoing his father, were, “I truly believe we are building one the greatest crypto companies anywhere on earth.” A bold statement, certainly, but the recent performance suggests a disconnect between aspiration and reality. After the crash, he attributed the sell-off to investors cashing in on profits, stating, "I’m holding all my @ABTC shares - I’m 100% committed to leading the industry."
But is that really the whole story? Or is it a face-saving narrative?
The broader context is crucial. Bitcoin itself has plunged more than 30% from its October 6 peak of $126,272 to $92,133. Deutsche Bank analysts estimate that $1 trillion in value has been wiped off the crypto market globally since then. ABTC's woes are not unique, but the Trump name adds a layer of scrutiny.
And this is the part of the report that I find genuinely puzzling. Why attach such a politically charged brand to something as volatile as cryptocurrency? It seems like a high-risk strategy.
American Bitcoin, formed out of another company, Hut 8 Corp, reported third-quarter net income of $3.5m on revenue of $64.2m in November. These numbers are respectable, but they don’t insulate the company from market-wide downturns or investor sentiment. The Trump family's crypto ventures extend beyond ABTC. They launched World Liberty Financial in 2024 and a cryptocurrency called $Trump in 2025. WLFI, a token of World Liberty Financial, has also dropped in value, from 26 cents in early September to about 16 cents.
Bloomberg estimated the family fortune at $7.7bn in September, but the decline in crypto values has pulled it down to $6.7bn—a billion-dollar haircut. Eric Trump’s cryptocurrency firm tumbles nearly 40% amid ‘crypto winter’
Trump and Crypto: A Conflict of Interest?
Executive Orders and Market Sentiment
As president, Donald Trump signed an executive order to support the digital asset industry and appointed crypto-friendly officials to regulatory positions. This creates a potential conflict of interest, or at least the appearance of one. Did his administration's policies artificially inflate the value of these assets, only for them to come crashing down later? It's a question worth asking.
Trump Media & Technology Group (TMTG), his social media company, has also been acquiring bitcoin. Shares are trading around $11, down from $42 in early February. Eric Trump, undeterred, called the dip a "great buying opportunity," adding, "People who buy dips and embrace volatility will be the ultimate winners. I have never been more bullish on the future of cryptocurrency and the modernization of the financial system.”
But what data supports that level of bullishness? Is it based on solid financial analysis, or simply wishful thinking?
The Emperor Has No Bitcoins
Eric Trump's crypto venture is a microcosm of the broader crypto market: high on hype, short on fundamentals, and prone to dramatic swings. The Trump brand, while powerful, couldn't shield it from the inevitable correction. The numbers don't lie: this is a speculative asset, and anyone treating it as a sure thing is in for a rude awakening.
Avaxsignals Published on2025-12-03 11:01:29 Views10 Comments0
