Musk Leaves DOGE Amid Trump Feud as Dogecoin Prices Plunge

Dogecoin faced a significant decline this week due to tensions between Elon Musk and US President Donald Trump. Prices dropped sharply, impacting traders who had been relying on the cryptocurrency's hype.

Musk and Trump Dispute

Elon Musk left the Department of Government Efficiency (DOGE) after criticizing Trump's spending bill, escalating their conflict. Trump expressed disappointment in Musk, leading to Musk's assertion that Trump needed his support to win the election. The situation intensified with Trump labeling Musk as “CRAZY” and threatening to cancel contracts with Tesla and SpaceX.

Musk also implicated Trump in allegations related to Jeffrey Epstein's case, suggesting Trump's name appears in secret files. In retaliation, Trump threatened to withdraw contracts from Musk's companies.

Dogecoin Price Decline

Reports indicated that Dogecoin fell approximately 11% on Thursday and was down 16% over the week, attributed mainly to Musk's departure from his government role. The lack of support from Musk shifted market sentiment quickly.

The price drop highlights Dogecoin's vulnerability, as it lacks underlying assets, making it susceptible to shifts in public perception.

Tesla Shares Decline

Tesla shares also reacted negatively, closing down 13% on Thursday following Trump's comments about canceling federal contracts with Musk's firms. This raised investor concerns over potential revenue loss and increased regulatory scrutiny.

Crypto Market Liquidations

The broader crypto market experienced liquidations totaling $982 million in one day, with long positions accounting for $881 million. This wave of liquidations underscored how swiftly market sentiment can shift amid high-profile disputes.