American Bitcoin (ABTC) saw its stock price plummet by 7.86% during Friday's trading session, as the cryptocurrency market experienced a significant selloff. The decline in ABTC's stock price aligns with the broader downturn in the crypto sector, with Bitcoin itself dropping 10% to $80,595.

The crypto market's recent decline can be attributed to several factors. Investors are betting that the Federal Reserve will not cut interest rates next month, making cryptocurrencies less attractive compared to interest-bearing investments like bonds and savings accounts. Additionally, there's a noticeable rotation out of risk assets, partly due to concerns about inflated valuations in the artificial intelligence sector.

Experts warn that the upcoming Thanksgiving holiday could exacerbate market volatility. Adam Morgan McCarthy, head of research at crypto data provider Kaiko, stated, "Liquidity will likely dry up across markets this week and heading into the holiday season. This could exacerbate moves if investors continue to par positions before the holidays and liquidity dries up more." This thin trading volume could lead to more significant price swings for cryptocurrencies and related stocks like ABTC.