#dego Single-day drop of 10%: On June 6 (Thursday), due to the escalation of conflicts between Musk and Trump, Dogecoin's price dropped by 10% in a single day.
Weekly cumulative drop of 22%: In the past week, Dogecoin's market value evaporated by nearly a quarter, with the conflict becoming a key trigger.
Direct relevance: Musk is seen as the 'spokesperson' for Dogecoin, and fluctuations in his political stance directly impact market confidence. For example:
After Tesla began accepting Dogecoin payments in 2022, its price rose by over 15% in a single day.
In 2023, Twitter (now X) changed the Dogecoin logo, and the price surged by 30% in a single day.
Tesla's stock price is adversely affected.
The conflict led to a single-day drop of 14.26% in Tesla's stock price, evaporating about 1.09 trillion yuan in market value, reflecting investors' concerns about the stability of Musk's companies.
Two, Background of the conflict and market transmission mechanisms
Trigger: Policy differences and personal grievances
Policy contradictions: Musk opposes Trump's tariff policies and the 'too big to fail' bill that expands debt (expected to increase federal debt by $2.5 trillion), believing it hinders corporate supply chains (such as Tesla's reliance on raw materials from China and Mexico).
Public mutual criticism:
Trump called Musk 'mentally ill' and threatened to cancel his government contracts.
Musk's backlash against retiring the SpaceX 'Dragon' spacecraft (a space transport tool relied upon by NASA) initially calmed but still triggered market panic.
Market sensitive point: Musk's influence on cryptocurrency
Speech-driven volatility: Elon Musk has directly influenced the price of Dogecoin through social media and business decisions (such as Tesla accepting payments, Twitter promotions).
Political association risk: Musk previously led the 'Department of Government Efficiency' under the Trump administration (DOGE project), and his exit has intensified expectations of policy uncertainty.
Three, Potential impacts on other cryptocurrencies
Mainstream cryptocurrencies like Bitcoin have not shown significant volatility yet.
This conflict did not mention Bitcoin or others; the market impact is temporarily limited to Dogecoin. However, if the conflict escalates to the regulatory policy level (such as Trump pushing for strict cryptocurrency regulations), it could affect the overall market.
Changes in industry regulatory expectations
Musk has long advocated for 'moderate regulation' to balance innovation and investor protection, while Trump, if re-elected, may adjust cryptocurrency policies. Their opposition could amplify policy uncertainty and suppress market risk appetite.
⏳ Four, Historical comparison and future risks
Short-term volatility vs long-term trends:
Similar to the reverse case in 2024 when Dogecoin rose with Musk's support for Trump, this conflict validates the 'double-edged sword' effect of his statements on cryptocurrency prices.
Ongoing risk points:
If political tensions continue (such as contract cancellations or adjustments to SpaceX's business), it may further weaken market confidence in Musk-related assets, triggering a chain sell-off in cryptocurrencies and Tesla stocks.
Summary: Influence pathways and investor focus
Influence dimensions: Specific manifestations and future risks
Dogecoin price fell sharply by 10% in the short term, with a weekly drop of 22%. Musk's political influence is weakening or his statements are shifting.
Tesla and related stocks lost 1.09 trillion yuan in market value in a single day due to government contract cancellations and supply chain policy adjustments.
Cryptocurrency market sentiment: Panic sentiment spreading to meme coins due to potential strict regulation policies from Trump.
Investors are advised to closely monitor the subsequent interactions between the two and policy developments (such as Trump's campaign statements and Musk's social media presence). If the conflict continues, it will exacerbate volatility in the cryptocurrency market. History shows that Musk's personal influence remains an undeniable 'weather vane' for assets like Dogecoin.
