Trump Crypto Empire Crumbles: American Bitcoin Plunges 50%
- American Bitcoin Corp and other Trump-backed crypto assets have crashed significantly with some tokens losing up to 99 per cent of their value.
- The "Trump premium" that once boosted these assets has turned into a liability due to legal scandals and failed economic policies.
- Retail investors are bearing the brunt of the losses while the Trump family retains profits despite the collapse in paper wealth.
The trading floor witnessed a bloodbath on Tuesday morning as American Bitcoin Corp collapsed in real time. The selloff was instantaneous and brutal. Shares plummeted thirty three percent just one minute after the opening bell rang. Losses ballooned to over fifty percent in less than half an hour. This twenty six minute wipeout serves as a grim symbol for the wider collapse of the Trump family’s digital currency ventures. The aura of invincibility that once surrounded these projects has vanished. Investors are fleeing the sector. The market is signaling a total loss of confidence in the political brand that once promised to send these assets to the moon.
The damage extends far beyond a single mining company. Practically every digital asset tied to the Trump name is suffering deep losses that far exceed the general market downturn. World Liberty Financial has seen its token tumble fifty one percent from its September peak. That performance is significantly worse than Bitcoin or the broader index of smaller tokens. Memecoins branded with the president’s name have effectively flatlined and lost nearly all their value since January. Eric Trump attempted to stem the bleeding on social media. He blamed stock lockup expirations rather than fundamental weakness. Yet the numbers paint a stark picture of a portfolio in freefall.
This reversal marks a dramatic shift in market psychology. Traders previously priced in a "Trump premium" based on the belief that political power would guarantee financial success. That premium has mutated into a drag on asset prices. Legal troubles and policy missteps are compounding the pain. A Chinese manufacturing scandal and criminal probes involving subsidiary partners have chased away executives and investors alike. President Trump has notably quieted his public promotion of these sectors recently. His aggressive tariff policies against China have also backfired on the very markets he promised to protect. The volatility has turned loyal supporters into bag holders.
The financial fallout has wiped out more than one billion dollars of paper wealth generated by these ventures. The Trump family still retains significant profits from early entry positions. It is the retail investors who bought at the frenzy's peak who are suffering the most painful consequences. Many assumed the president’s backing would create a price floor. The market proved them wrong. The speculative bubble has burst. The industry is learning a harsh lesson that political endorsements cannot overcome weak fundamentals or market gravity.