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Shares of American Bitcoin, a company linked to the family of US President Donald Trump, fell sharply on Tuesday, despite a broader recovery in the cryptocurrency market.
The company has faced continuous challenges after a significant decrease in the value of the shares in recent months.
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The American Bitcoin Company is making losses
While cryptocurrency markets have welcomed the recent reversal in Bitcoin’s price, American Bitcoin has continued to see its shares fall.
A Google Finance report indicates that the shares of a mining company Bitcoin It has fallen by 37% in the last 24 hours, and is valued at $2.22 at the time of writing. In the last six months, this drop has reached about 60%.
The latest performance of the project is not good for the Trump family. American Bitcoin was created a few months after Trump took office, as a spin-off from Hot 8 company.
Under the agreement, Hot8 provided the majority of the mining infrastructure and retained an 80% stake in the project. While American Bitcoin has become the platform for which Trump’s sons, Eric and Donald Trump Jr., control about 20%.
As a result, the poor performance of a mining company’s stock is directly linked to its profitability, affecting… Financial interests of the Trump family.
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What is striking about today’s events is that, despite the recovery of the Bitcoin price, the company’s shares continued to experience the opposite effect, and continued to fall.
Bitcoin struggles continue despite price recovery
Report from Bitcoin prices It shows poor performance in the last two months. Since peaking at $126,000 in October, its price has fallen sharply. Less than two weeks ago, it fell to $82,800, the lowest since April.
Bitcoin regained the $90,000 level on Tuesday, boosting market sentiment. However, this transformation was not enough to raise the price of shares of companies based on Bitcoin, such as the American Bitcoin Company.
The opposite reaction indicates that it may not be enough Short term price recovery To improve the performance of the company. Given the broader context of the cryptocurrency industry, this finding is not surprising.
Uncertainty is composed of possibility MicroStrategy Decision Selling their Bitcoin holdings If its share price remains below the value of its Bitcoin reserves. This can erode confidence in the asset.
Ethereum has delayed More benefits of Bitcoinwhich also indicates market weakness.
Major economic factors also contribute to price volatility. The Federal Reserve’s position on interest rates The monetary policy of the Bank of Japan They added more uncertainty.
