$WCT Reason of Market Crash
Dogecoin Crashes 10% as Musk Cuts Ties with Trump Amid Contract Threats
Dogecoin plunged 10% today, deepening its weeklong losses to 22%, after Elon Musk severed ties with Donald Trump and the Department of Government Efficiency (ironically abbreviated as DOGE).
The fallout began earlier this week when Musk criticized Trump’s spending bill. In response, Trump withdrew the NASA nomination of Musk’s ally Jared Isaacman—escalating tensions between the two. The feud intensified Thursday when Trump threatened to cancel federal contracts held by Musk’s companies. Tesla stock dropped 14%, and Musk hit back on X: “Go ahead, make my day,” announcing the shutdown of SpaceX’s Dragon program—the only U.S. spacecraft ferrying astronauts to the ISS.
Although Dogecoin wasn’t directly mentioned, the coin’s reliance on Musk’s influence made it highly vulnerable. With Musk distancing himself from Washington, investor confidence crumbled. Past Dogecoin surges—like the 15% jump when Tesla accepted it for merch in 2022, or the 30% rally when Musk replaced Twitter’s logo with a Shiba Inu in 2023—showed how tightly its value was tied to Musk’s moves.
Now, with Musk out of Trump’s circle and facing potential contract cancellations, Dogecoin is feeling the fallout. Crypto traders once hopeful for a pro-crypto Trump era are now watching that dream unravel.
