Why American Bitcoin Stock Price is Plummeting as BTC Soars – A Tragic Tale of Panic and Math

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On Tuesday, the American Bitcoin stock-yes, the one with Trump’s fingerprints all over it-plunged by a heart-stopping 40%. The stock found itself scraping the lowest levels since May of this year. Ah, what a lovely sight for investors who were hoping for a golden future. 🤑

  • American Bitcoin price plummeted by over 40% on Tuesday. 🏚️
  • The fall is all the more perplexing since Bitcoin itself was making a heroic recovery. 🦸‍♂️
  • Probably a mix of panic selling and the magic of technicals. 😱

Why Is American Bitcoin Stock Crashing? 🤔

American Bitcoin’s stock crashed to a tragic $2, which is an 86% decline from its peak. Oh, how the mighty have fallen! Its market cap has now shriveled to a measly $1.9 billion, down from a glorious $8.6 billion just months ago. Nothing like a dramatic fall to keep us on our toes.

What makes this even more charming is that this debacle occurred on the same day Bitcoin itself had a dazzling rebound. BTC shot up by over 4.5%, breaking through that pesky resistance at $90,000. So much for being the Bitcoin whisperer, eh? 💸

While Bitcoin was rising from the ashes, American Bitcoin was caught drowning in the market’s treacherous waters. Other Bitcoin-focused companies had a much more pleasant day-MSTR stock surged by over 4%, and Trump Media managed a cute 1% uptick. Meanwhile, Bullish and GD Culture stocks also staged their own little rebounds. 🏃‍♂️💨

Normally, companies with a Bitcoin treasury tend to fare well when Bitcoin is on the rise. One would think that this is the key to their prosperity. Alas, not for ABTC. Such is the unpredictability of the stock market. 🎭

American Bitcoin-spawned from Hut 8 Mining and co-founded by Eric Trump-holds a treasure trove of 4,002 Bitcoin. Currently, these coins are valued at over $363 million. Sadly, this is nowhere near the company’s market cap. It’s almost as though the market doesn’t appreciate the treasures being hoarded. 🙄

But why did the stock crash? Was there a singular event that caused this? Alas, no. It seems this tragedy was due to panic selling by retail traders, who, by the looks of it, have been eating losses since ABTC went public. 🍿

Moreover, the stock’s crash might be linked to its rather inflated valuation. While competitors like Metaplanet and Strategy are trudging along with a negative mNAV ratio, ABTC is riding high with a 5x multiple. Oh, the luxury! 🙃

The company’s business model is a bit of an outlier, though. Instead of buying Bitcoin from third parties, it mostly accumulates it through mining operations. Perhaps that explains the disparity in valuation. But who’s counting? 🏗️

The company’s latest earnings report, for those interested in the fine details, reveals that revenue for the third quarter rose to $64 million, with net income of $3.4 million. Not exactly a thrilling growth story, but hey, it could be worse, right? 😌

ABTC Stock Price Technical Analysis 🧑‍💻

The daily chart paints a grim picture, as the ABTC stock price has been sliding for months now. This drop followed a double-top pattern at $14.50 and a neckline at $3.70. Double tops are as ominous as they sound, often predicting further declines. 📉

The stock remains stubbornly below the 50-day moving average, while the Average Directional Index (ADX) has risen to 23, its highest point since October. We even saw a death cross, with the 50- and 200-day moving averages crossing paths like some tragic lovers who should never have met. 💔

So, in short, the double-top suggests we might be headed for a drop down to the psychological level of $1.50. Will this be the bottom? Only time-and possibly more panic selling-will tell. ⏳

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2025-12-02 22:03