This Trump-Linked Crypto Stock Just Plunged. Should You Buy the Dip as Shares Hit Deeply Oversold Levels?

BTC-USD +0.59% ABTC +9.13%

American Bitcoin (ABTC) shares crashed as much as 49% on Dec. 2 amid broader macro-driven turmoil in the cryptocurrency market.

Bitcoin (BTCUSD) is currently down some 30% versus its year-to-date high of over $126,000 in early October.

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This severe correction has triggered massive liquidations exceeding $19 billion, affecting over 1.6 million traders in what analysts describe as one of the most significant deleveraging events in crypto history.

Versus its year-to-date high, ABTC stock is now down more than 85%, with its relative strength index (RSI) indicating deeply oversold territory.

Should You Load Up On ABTC Stock at Current Levels

Despite a sharp pullback, American Bitcoin shares aren’t worth buying on the dip as the underlying business model faces unprecedented challenges.

According to industry experts, Bitcoin mining operations are currently experiencing “the harshest margin environment.”

Hashprice metrics have fallen dramatically from $55 per petahash per second in Q3 to about $35, pushing payback periods to over 1,000 days for new mining equipment while the next BTC halving is only 850 days away.

This creates severe capital recovery challenges, since new-generation mining machines now require about 3 years to recoup their costs in an environment where mining margins continue to compress.

Note that the deterioration in mining economics hits American Bitcoin twice – squeezing its day-to-day margins and weakening the value of the BTC it holds on its balance sheet.

Why Else Are American Bitcoin Shares Unattractive for 2026?

ABTC shares are super unattractive to own heading into 2026 for several reasons.

First and foremost, this crypto firm, which has ties to President Donald Trump’s family, continues to trade as a penny stock; a status that signals heightened risk, limited liquidity, and vulnerability to massive price swing driven more by speculation than fundamentals.

Penny stocks often lack institutional sponsorship, and ABTC is no exception. The firm receives coverage from only two Wall Street analysts, a huge red flag that underscores its marginal position in the broader equity research landscape.

Sparse coverage means investors have little independent scrutiny or consensus to rely on – leaving the crypto stock exposed to rumor-driven volatility.

In short, the penny stock status, thin analyst coverage, and eroding fundamentals make American Bitcoin a high‑risk equity with little to justify ownership at current levels.

This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com