American Bitcoin (ABTC) saw its stock price plummet by 7.86% in Friday's pre-market trading, as the cryptocurrency market experiences its worst selloff in three years. The sharp decline in ABTC's stock price mirrors the broader trend in the crypto sector, with Bitcoin itself dropping 10% to $80,595.

The crypto market's downturn is attributed to two main factors. First, investors are adjusting their expectations regarding potential Federal Reserve interest rate cuts, making cryptocurrencies less attractive compared to traditional interest-bearing investments. Second, there's a noticeable shift away from risk assets, partly due to concerns about inflated valuations in the artificial intelligence sector.

Other crypto-related stocks are also feeling the pressure, with companies like ETHZilla, Bit Digital, Riot, and Strive seeing significant declines. As the Thanksgiving holiday approaches, market analysts warn of potential further volatility due to thinning trading volumes. Adam Morgan McCarthy, head of research at crypto data provider Kaiko, suggests that "liquidity will likely dry up across markets this week and heading into the holiday season," which could exacerbate price movements if investors continue to reduce their positions.