Dogecoin took a hard hit this week as tensions flared between Elon Musk and US President Donald Trump. Prices slid sharply, and red numbers dominated the market.
Traders who had been riding the hype found themselves on the losing end. It was a week many will remember for how politics and memes intersected in unexpected ways.
Musk And Trump Clash
According to public posts, Elon Musk officially left the Department of Government Efficiency (DOGE) on Thursday. That move came after he criticized Trump’s spending bill.
He had been co-leading that department since late 2024. Their back-and-forth heated up after Trump said he was “very disappointed” in Musk.
TRUMP: “I’m very disappointed with Elon. I’ve helped him a lot. He knew the inner workings of the bill better than anybody sitting here. He had no problem with it. All of a sudden he had a problem & he only developed the problem when he found out we’re going to cut EV mandate” pic.twitter.com/aeCcmCAODQ
— DogeDesigner (@cb_doge) June 5, 2025
In response, Musk claimed Trump would not have won the election without his support. Then Trump called Musk “CRAZY” and threatened to cancel Tesla and SpaceX contracts. Musk fired back on X with, “Go ahead, make my day.” He even warned he might decommission SpaceX’s Dragon spacecraft.
Musk Mentions Epstein Documents
Based on posts on X, Musk also said that files about Jeffrey Epstein’s case have stayed secret because Trump’s name appears in them. That claim added another layer to the feud.
It wasn’t just about 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 companies.
Time to drop the really big bomb:@realDonaldTrump is in the Epstein files. That is the real reason they have not been made public.
Have a nice day, DJT!
— Elon Musk (@elonmusk) June 5, 2025
Dogecoin Price Plunge
Based on reports, Dogecoin fell about 11% on Thursday alone. Over the past week, it was down 16% from its recent highs. Traders pointed to Musk’s political exit as a key factor.
Many still see Dogecoin as “the people’s crypto” because of Musk’s early support. But without his backing in that government role, sentiment soured quickly.
It’s a coin that has no real asset behind it, so any shift in hype can send prices tumbling. A drop of this size is rare, yet it felt inevitable once the Musk-Trump feud spilled into public view.
Tesla Shares Slide
Elon Musk’s companies did not escape the fallout. Tesla stock closed down 13% on Thursday. That tumble came after Trump signaled he would pull federal contracts from any company owned by Musk.
Investors feared lost revenue and stiffer regulatory oversight. Tesla shares had been riding high this year, but angry tweets from Trump were enough to shake confidence. Even a short phrase on X can move markets—especially when it involves a figure as polarizing as Trump or Musk.
Crypto Market Liquidations
Meanwhile, the broader crypto market also felt a jolt. According to Coinglass data, total liquidations reached $982 million in a single day. Of that, long liquidations—bets on rising prices—totaled $881 million.
Short positions, or bets expecting prices to fall, saw losses of $100 million. That level of liquidation is striking, and it showed how quickly nerves can fray when big personalities clash. Bitcoin and many altcoins slid alongside Dogecoin, creating a chain reaction of forced sell-offs.
Featured image from Allison Robbert and Saul Loeb/AFP, chart from TradingView
