ABTC Stock Slumps Amid Fed Rate Hike Expectations and Crypto Market Headwinds

Shares of American Bitcoin Corp. (NASDAQ:ABTC) are trading lower on Friday, reversing Thursday's rally.

The decline comes as a result of broader headwinds in the digital asset ecosystem following the release of labor market data.

A hotter-than-expected payrolls report has boosted expectations for a potential Federal Reserve rate hike, leading to a stronger U.S. dollar and higher interest-rate expectations.

This has weighed on crypto and other risk assets, reducing investor appetite for speculative investments.