The crash Tuesday of American Bitcoin Corp., a crypto miner, was swift and dramatic. At 9:31 a.m. on Wall Street, just a minute after trading commenced, its shares had already plummeted by 33%. Five minutes later, this figure worsened to a 42% drop, culminating in an over 50% loss by 9:56 a.m.
American Bitcoin quickly became emblematic of the crypto market turmoil in late 2025 and the fall of various ventures the Trump family has championed in the digital currency arena over the past year. While the broader crypto markets have seen a decline of about 25%, particularly Bitcoin, Trump-related projects have been hit significantly harder.
World Liberty Financial, co-founded by President Trump and his sons, experienced a 51% drop in its WLFI token since early September, faring worse than both Bitcoin and smaller digital tokens. Alt5 Sigma, a company endorsed by Trump's sons, has nosedived around 75%, grappling with increasing legal troubles.
Additionally, memecoins named after President Trump and Melania Trump have plummeted approximately 90% and 99%, respectively, since their January highs. American Bitcoin, co-founded by Eric Trump, has fallen 75% following the recent crash.
These declines have significantly eroded the substantial crypto wealth amassed by the Trump family earlier this year, bearing broader implications for both the digital asset industry and President Trump's public standing. Initially, Trump's endorsement had boosted a variety of crypto tokens during the early months of his second term, turning Bitcoin's price into a measure of his political prosperity.
Currently, however, what was perceived as a Trump premium has transformed into a Trump drag, undermining one of the crucial supports for crypto assets and reflecting the rapid ebb of confidence in these speculative markets – and the president himself.
“The Trump presidency has been a double-edged sword for legitimacy,” stated Hilary Allen, a law professor at American University’s Washington College of Law. “Trump initiated numerous crypto projects; however, many quickly lost value. This has not aided in achieving legitimacy through the Trump family.”
World Liberty Financial and the entity behind Trump’s memecoin, Fight Fight Fight, have not commented on recent developments.
Despite President Trump scaling down his public promotion of crypto, Eric Trump took to social media on Tuesday, attributing American Bitcoin’s poor performance to the expiration of a lockup period for its shares rather than wider market weaknesses.
“Our fundamentals are virtually unmatched,” he wrote in a post on X. “I’m 100% committed to leading the industry.”
Indeed, dramatic shifts in assets linked to the Trump family are not unusual for a notoriously volatile industry. Digital tokens have previously experienced steep declines before rebounding. As American Bitcoin faltered on Tuesday, Bitcoin itself enjoyed one of its best days in weeks, climbing approximately 6%.
Earlier this year, Trump’s endorsement of the technology had sparked hopes of lifting digital tokens out of their repetitive boom-bust cycle to become a reliable financial system component. Many crypto enthusiasts believed Trump could ensure the success of his cherished projects.
For a while, this cross-promotional strategy appeared effective. Supporters of President Trump bought Trump tokens, driving up their value. Gryphon Digital's shares soared 173% after announcing a merger with Eric Trump’s American Bitcoin in May, followed by another 16% rise when trading began post-merger in September.
These initiatives benefited from policies and regulatory shifts Trump advocated, particularly legislation aimed at mainstreaming crypto stablecoins pegged to the dollar.
Nevertheless, warning signs grew progressively clearer. The memecoins launched pre-inauguration with Trump’s extensive promotion steadily lost momentum, witnessing only sporadic recovery moments, such as the April rally following a dinner invitation from the president to major memecoin holders.
Joel Li, CEO of an online marketplace for electric vehicles, bought the memecoin for the dinner but sold out shortly thereafter, noting worsening conditions post-Trump’s October tariff escalation against China.
“People began realizing this might not align with their expectations,” Li stated.
Michael Terpin, a seasoned crypto investor, noted the tariffs served as a stark reminder: “Trump giveth and Trump taketh away.”
The challenges extend beyond broader market uncertainties. American Bitcoin faced scrutiny over its mining machines, sourced from a Chinese manufacturer, being investigated for US national security risks. Meanwhile, Alt5 Sigma confronted executive departures following a criminal probe in Rwanda involving one of its subsidiaries.
Alt5 Sigma has not commented on recent issues.
The downturn since October has erased over $1 billion from the Trumps’ crypto ventures, yet they retain significant profits, per Bloomberg Billionaires Index. Retail investors who bought assets at peak values are bearing the brunt of the losses.
Kevin Hu, a 22-year-old student in Vancouver, anticipated a continued rally but watched his digital token portfolio shrink by up to 40% mid-November.
“You’d think the president's pro-crypto stance would establish a market floor,” he remarked. “But the reality was different. The memecoin controversies disillusioned many.”