Dogecoin (DOGE) fell 10% today, taking its weekly losses to 22%, after Elon Musk officially left the Donald Trump administration and severed ties with the Department of Government Efficiency (D.O.G.E.).
DOGE Price Chart | Source: Bitcoin Magazine
The crash came alongside Elon's brutal political brawl with the sitting US president and it sent the once-beloved memecoin deep into the red.
The drama began earlier this week when Elon criticized Trump’s latest spending bill. The president didn’t stay silent. He responded by withdrawing NASA’s nomination of Jared Isaacman, Elon’s longtime business ally and the man he wanted to lead the U.S. space exploration effort. That withdrawal broke the peace between them.
Trump threatens to cancel contract, Musk responds by shutting down Dragon
By Thursday, it had turned into a full-blown public war, with Trump telling reporters he was “very disappointed” in Elon.
Hours later, Elon fired back on X, writing, “Trump would have lost the election without me.” Trump responded, “THAT’S CRAZY.”
Trump threatened to cancel federal contracts held by Elon's company. The threat immediately had an impact on the market, with Tesla shares dropping 14% before the day's close. But Elon did not panic.
“Go ahead, make my day even better,” he wrote on X, then announced that SpaceX would begin shutting down its Dragon spacecraft program, the only US spacecraft that transports astronauts to and from the International Space Station.
There is no direct mention of Dogecoin, but that doesn’t matter. This memecoin has never been pegged to any real-world value or asset. Instead, it’s driven by hype, memes, and most of all, Elon’s influence. That’s why this political turmoil has hit DOGE so hard.
Elon leaving Washington means his influence is waning and DOGE holders are suffering. In 2022, Dogecoin surged 15% in a day after Tesla accepted payment for goods in the memecoin.
In 2023, Elon replaced the Twitter logo with a Shiba Inu dog, the mascot of Dogecoin, and the price skyrocketed more than 30%.
Now that Elon has left the Trump administration and contracts are in jeopardy, the price of DOGE is crashing.
Back in November 2024, after Trump's victory, Dogecoin surged along with other projects like Bitcoin, as traders anticipated a regulatory-friendly environment.
That optimism has now evaporated. With Elon out and government pressure mounting, buyers are paying the price for betting on their “close relationship.”
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