Trump-Linked American Bitcoin Halves in Minutes as Heavy Selling Hits

An American Bitcoin fund with political ties just got cut in half—and it took mere minutes.

The Sell-Off That Shook the Street

Heavy selling pressure slammed the asset, slicing its value by 50% in a blink. This wasn't a slow bleed; it was a flash crash with political flavor, spotlighting the volatile intersection of digital currency and headline names.

Numbers Don't Lie, But Narratives Bend

The figures are stark: a halving event measured in market minutes, not block rewards. It's a brutal reminder that in crypto, association can be as powerful as utility—and sometimes just as risky. Traders watched the ticker plunge, proving once again that in high-finance, the only 'stable' relationship is between Wall Street and its own fees.

So, what's next for politically-branded crypto plays? This episode writes a cautionary tale in red ink. Volatility isn't just about code; it's about connections. And when the selling starts, even the biggest names can't stop the math.

A violent move in a shaky market

Bitcoin’s (BTC) sharp retreat over the past several weeks has already cooled enthusiasm across speculative corners of the crypto ecosystem. The token has fallen more than 30% from its early-October high, a slide driven by shifting macroeconomic conditions and a broader pullback from risk assets.

That pressure set the backdrop for ABTC’s latest decline. Despite Bitcoin briefly regaining strength on Tuesday, rallying back above $91,000 after nearly $1 billion in Leveraged positions were wiped out a day earlier, the recovery wasn’t enough to lift every crypto-exposed name. ABTC was the day’s stark exception.

Trading halts and unusual volumes

The stock fell as much as 51%, triggering several automatic trading halts. Nasdaq data showed an extraordinary 55 million shares traded during the session, compared with an average of around 3 million. The spike in activity suggested heavy selling by early investors or funds adjusting exposure amid market turbulence.

The slump also pulled down Hut 8, ABTC’s majority owner, by 12%. The miner had previously benefited from pivoting part of its business toward AI infrastructure — a MOVE that had nearly tripled the stock over six months, but the day’s slide erased a meaningful portion of those gains.

From post-merger highs to single-digit struggle

ABTC entered public markets through a reverse merger with Gryphon Digital in September 2025. At one point, the shares traded near $14, lifted by Optimism around its mining economics and its positioning as a U.S.-focused operator.

That optimism has since faded. With Tuesday’s collapse, the stock is now hovering just above $2, down more than 78% from its September peak.

The company reported $3.5 million in net income on $64.2 million in third-quarter revenue last month, but deteriorating market conditions have overshadowed those results.

Speculation over lockups and Eric Trump’s response

The severity of the decline quickly ignited theories on social platforms about possible insider activity. However, regulatory filings indicate that most historical holders remain restricted by a 180-day lockup that extends until March 3, 2026. 

$ABTC $HUT
Who Is Locked Up & Who Is Not: 👇

🔸 LOCK UPS:
•Dominari Holdings Inc. → lock-up ends Mar 2, 2026 (180-day carve-out)

•Alan Garten → Sep 3, 2026 (1 year)
•Anthony Hayes → Sep 3, 2026 (1 year)

•Christopher Devall → Sep 3, 2026 (1 year)

•Donald Trump… pic.twitter.com/VW2R10ixrL

A separate investor rights agreement imposes a standstill for major insiders, including Eric TRUMP and Donald Trump Jr., through September 3, 2026.

What changed on Tuesday was the status of pre-merger private placement shares, which became eligible for trading. 

That clarification came directly from Eric Trump, who addressed the market action on X, “Today our pre-merger private placement shares unlocked — these early investors are freely available to cash in on their profits for the first time which is why we will see volatility.”

Thanks @Coachjv_. Today our pre-merger private placement shares unlocked — these early investors are freely available to cash in on their profits for the first time which is why we will see volatility.

Our fundamentals are virtually unmatched and our differentiator: mining BTC… https://t.co/7h1Aqjt8iE

“Our fundamentals are virtually unmatched and our differentiator: mining BTC at ~50% of spot with 56% gross margin in Q3 and climbing the BTC ranks daily. I’m holding all my ABTC shares — I’m 100% committed to leading the industry.”

Despite the statement, selling pressure persisted through the afternoon.

A pattern across Trump-connected crypto projects

ABTC’s collapse adds to a string of weak performances among crypto ventures linked to members of the Trump family:

• World Liberty Financial’s WLFI token is down more than 70% from its peak.
• ALT5 Sigma Corp., which holds WLFI tokens, has fallen more than 80% from its record high.
• TRUMP and MELANIA meme coins have also endured deep declines.
• Trump Media (DJT), which holds a large Bitcoin treasury, has dropped about 75% this year.

The broader picture suggests that appetite for politically linked digital assets has cooled sharply, even as some parts of the crypto market attempt to stabilize.

What the collapse may signal

For ABTC, the immediate challenge will be convincing investors that Tuesday’s plunge reflects a one-off liquidity event rather than a deeper structural issue. With Bitcoin attempting to claw back recent losses and sentiment still fragile, the company faces an uphill path to restoring confidence.

The episode also offers a reminder: in a market as volatile as crypto, even high-profile backing provides no guarantee against sudden and severe reversals.

Also Read: bitcoin Slides to $85K as Asian Stocks Shake Global Markets