American Bitcoin plunged 50% during a crypto rally, exposing a fatal flaw in the “Trump proxy” trade
Bitcoin (BTC) clawed back from $86,286 on Dec. 2 to $93,324 as of press time, up by 8%, while the Trump family’s American Bitcoin (ABTC) shares tumbled.
The BTC price increase can be attributed to improved macro conditions and Vanguard’s opening of crypto ETF access to tens of millions of clients.
At the same time, American Bitcoin, the Trump-linked mining stock pitched as a Bitcoin proxy, cratered as much as 50% intraday on volume about ten times normal, triggering repeated trading halts before settling around 35% lower.
The stock now sits about 80% below its September peak of $9.40, even as the asset it’s supposed to track staged a textbook relief rally.
The moves ran in opposite directions because they responded to entirely…
