Musk Exits DOGE, Clashes With Trump—Dogecoin Gets Caught In The Crossfire

Dogecoin took a tough hit this week as tensions flared between Elon Musk and US President Donald Trump. Costs slid sharply, and pink numbers dominated the market.

Merchants who had been driving the hype discovered themselves on the shedding finish. It was every week many will keep in mind for the way politics and memes intersected in surprising methods.

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Musk And Trump Conflict

Based on public posts, Elon Musk formally left the Division of Authorities Effectivity (DOGE) on Thursday. That transfer got here after he criticized Trump’s spending invoice.

He had been co-leading that division since late 2024. Their back-and-forth heated up after Trump stated he was “very upset” in Musk.

🚨TRUMP: “I’m very upset with Elon. I’ve helped him lots. He knew the interior workings of the invoice higher than anyone sitting right here. He had no downside with it. Swiftly he had an issue & he solely developed the issue when he discovered we’re going to chop EV mandate” pic.twitter.com/aeCcmCAODQ

— DogeDesigner (@cb_doge) June 5, 2025

In response, Musk claimed Trump wouldn’t have gained the election with out his help. Then Trump referred to as Musk “CRAZY” and threatened to cancel Tesla and SpaceX contracts. Musk fired again on X with, “Go forward, make my day.” He even warned he would possibly decommission SpaceX’s Dragon spacecraft.

Musk Mentions Epstein Paperwork

Primarily based on posts on X, Musk additionally stated that information about Jeffrey Epstein’s case have stayed secret as a result of Trump’s identify seems in them. That declare added one other layer to the feud.

It wasn’t nearly spending anymore. Now there was an allegation tying the US President to sealed Epstein investigations. Trump replied that he would pull any contracts with Musk’s corporations.

Time to drop the actually huge bomb:@realDonaldTrump is within the Epstein information. That’s the actual motive they haven’t been made public.

Have a pleasant day, DJT!

— Elon Musk (@elonmusk) June 5, 2025

Dogecoin Worth Plunge

Primarily based on studies, Dogecoin fell about 11% on Thursday alone. Over the previous week, it was down 16% from its latest highs. Merchants pointed to Musk’s political exit as a key issue.

Many nonetheless see Dogecoin as “the folks’s crypto” due to Musk’s early help. However with out his backing in that authorities function, sentiment soured shortly.

It’s a coin that has no actual asset behind it, so any shift in hype can ship costs tumbling. A drop of this measurement is uncommon, but it felt inevitable as soon as the Musk-Trump feud spilled into public view.

Tesla Shares Slide

Elon Musk’s corporations didn’t escape the fallout. Tesla inventory closed down 13% on Thursday. That tumble got here after Trump signaled he would pull federal contracts from any firm owned by Musk.

Buyers feared misplaced income and stiffer regulatory oversight. Tesla shares had been driving excessive this 12 months, however indignant tweets from Trump have been sufficient to shake confidence. Even a brief phrase on X can transfer markets—particularly when it entails a determine as polarizing as Trump or Musk.

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Crypto Market Liquidations

In the meantime, the broader crypto market additionally felt a jolt. Based on Coinglass information, complete liquidations reached $982 million in a single day. Of that, lengthy liquidations—bets on rising costs—totaled $881 million.

Brief positions, or bets anticipating costs to fall, noticed losses of $100 million. That stage of liquidation is putting, and it confirmed how shortly nerves can fray when huge personalities conflict. Bitcoin and lots of altcoins slid alongside Dogecoin, creating a sequence response of pressured sell-offs.

Featured picture from Allison Robbert and Saul Loeb/AFP, chart from TradingView