Shares of American Bitcoin (ABTC) plunged as much as 49% on December 2 amid broader macroeconomic turmoil in the cryptocurrency market.
Bitcoin (BTCUSD) is currently down around 30% from its year-to-date high of over $126,000 in early October.
This severe correction has led to massive liquidations exceeding $19 billion, affecting more than 1.6 million traders in what analysts describe as one of the largest deleveraging events in the history of cryptocurrencies.
Compared to its year-to-date high, ABTC stock is now down more than 85%, and its Relative Strength Index (RSI) indicates deeply oversold territory.
Despite a sharp pullback, it is not worth buying US Bitcoin stocks on the dip as the underlying business model faces unprecedented challenges.
According to industry experts, Bitcoin mining operations are currently experiencing “the toughest margin environment.”
Hashprice metrics have fallen sharply from $55 per petahash per second in Q3 to around $35, pushing payback periods to over 1000 days for new mining rigs, while the next BTC halving is just 850 days away.
This creates serious challenges for capital recovery, as new generation mining machines now require around 3 years to recover their costs in an environment where mining margins continue to compress.
Note that the deteriorating mining economy hits US Bitcoin twice: reducing its daily margins and weakening the value of the BTC it holds on its balance sheet.
ABTC stock is very unattractive to own heading into 2026 for several reasons.
First, this crypto company, which has ties to President Donald Trump’s family, continues to trade as a penny stock; a status that indicates increased risk, limited liquidity, and vulnerability to massive price swings driven more by speculation than fundamentals.
Penny stocks often lack institutional sponsorship and ABTC is no exception. The firm receives coverage from just two Wall Street analysts, a huge red flag that underscores its marginal position in the broader equity research landscape.
