American Bitcoin's stock is finding some footing after getting hammered by a massive selloff. The culprit? A lock-up period just expired, unleashing a flood of shares onto the market.

The damage was brutal—shares nosedived nearly 40% as early investors and insiders finally got the green light to cash out. Classic unlock event chaos. When lockups end, selling pressure typically spikes as holders rush to secure profits or cut losses, and this case proved no exception.

But here's the twist: after that vicious drop, the stock's showing signs of stabilization. Could be bargain hunters stepping in, or maybe the panic selling exhausted itself. Either way, the bleeding seems to have slowed for now.

This whole episode highlights a recurring pattern in crypto-adjacent stocks—unlock events can trigger violent swings regardless of fundamentals. For anyone tracking Bitcoin exposure through equities, these lockup calendars matter just as much as BTC's price action itself.

Worth watching whether this stabilization holds or if we're just in the eye of the storm.