The cryptocurrency market's recent turmoil has found a stark symbol in a company linked to former U.S. President Donald Trump's family. On a Tuesday in early December 2025, shares of American Bitcoin Corp, a crypto miner co-founded by Eric Trump, experienced a breathtaking collapse.
The 26-Minute Market Meltdown
The sell-off was both swift and severe. Trading had barely begun on Wall Street when, at 9:31 a.m., the company's shares were already down 33%. The bleeding accelerated rapidly. Within five minutes, losses expanded to 42%. By 9:56 a.m., just 26 minutes after the opening bell, the stock had been gutted by more than 50%.
This precipitous drop cemented American Bitcoin Corp's status as a poster child for the broader crypto market decline in late 2025. More specifically, it underscored the dramatic collapse of numerous digital currency ventures promoted by the Trump family over the preceding year. While major cryptocurrencies like Bitcoin have fallen roughly 25% over two months, Trump-associated projects have suffered far deeper losses.
A Portfolio in Freefall
The damage extends well beyond a single mining company. World Liberty Financial, co-founded by Donald Trump and his sons, has seen its WLFI token tumble 51% from its September peak. Alt5 Sigma, another firm promoted by the Trump sons, has plunged approximately 75% amid mounting legal challenges.
Perhaps the most spectacular declines are found in the realm of memecoins. A digital token named after the former president has cratered around 90% from its record high in January 2025. Another coin bearing the name of his wife, Melania, has fared even worse, collapsing an astonishing 99%. Following its Tuesday crash, American Bitcoin Corp itself is now down 75%, despite a modest 11% pre-market rebound the following day.
From Trump Premium to Trump Drag
These moves have significantly eroded the substantial crypto wealth the Trump family accumulated earlier in the year. The downturn also carries broader implications for the digital asset industry and the former president's public standing. Trump's embrace of cryptocurrency initially provided a boost to a wide array of tokens, with Bitcoin's price even becoming a perceived marker of his political fortunes.
Now, that dynamic has sharply reversed. What was once viewed as a Trump premium has transformed into a Trump drag, undermining one of the key narratives supporting crypto asset prices. The rapid evaporation of value highlights the fragility of confidence in these speculative markets.
Hilary Allen, a law professor at American University, noted the paradox. "Trump started launching his own crypto projects, many of which lost value very quickly," Allen stated. "If the goal was to achieve legitimacy through the Trump family, that's not helped."
In response to the crash, Eric Trump took to social media, attributing American Bitcoin Corp's plunge to the end of a lockup period for its shares rather than fundamental weakness. "Our fundamentals are virtually unmatched," he wrote. "I'm 100% committed to leading the industry." Representatives for World Liberty Financial and the Fight Fight Fight memecoin did not immediately respond to requests for comment.
The episode serves as a potent reminder of the extreme volatility and risk inherent in cryptocurrency investments, particularly those tied to celebrity or political figures. As the market corrects, the ventures most closely associated with the Trump name are currently bearing the brunt of the sell-off.
