This week, due to escalating tensions between Elon Musk and U.S. President Donald Trump, Dogecoin suffered a heavy blow. Prices dropped significantly, with red numbers dominating the market.
Those who had been promoting the speculation ultimately found themselves as losers. This week, politics and memes intertwined in unexpected ways, making it a week many will remember.
Conflict between Musk and Trump
According to public posts, Elon Musk officially left the Department of Government Efficiency (DOGE) on Thursday. Previously, he criticized Trump's spending bill.
He has served as co-head of the department since the end of 2024. Their dispute intensified after Trump expressed being 'very disappointed' in Musk.
Musk responded by stating that Trump would not have won the election without his support. Subsequently, Trump called Musk 'crazy' and threatened to cancel contracts for Tesla and SpaceX. Musk countered, 'Come on, make me happy.' He even warned that he might retire SpaceX's Dragon spacecraft.
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According to posts on X, Musk also stated that the reason the documents in the Jeffrey Epstein case are confidential is that Trump's name appears in them. This assertion further escalated the dispute between the two sides.
This is no longer just a matter of spending money. Now, another accusation links the U.S. president to the investigation into the Epstein case. Trump responded that he would cancel all contracts with Musk's companies.
It's time to drop the bombshell: @realDonaldTrump appears in Epstein's files. This is the real reason these files have not been made public to date.
Have a great day, DJT!
— Elon Musk (@elonmusk) June 5, 2025
Dogecoin price plummets
It was reported that Dogecoin dropped about 11% in just one day on Thursday. Over the past week, the coin's price fell 16% from recent highs. Traders pointed out that Musk's political exit was a key factor.
Due to Musk's early support, many still view Dogecoin as the 'people's cryptocurrency.' However, after losing his support in the government, market sentiment quickly deteriorated.
Bitcoin is a currency not backed by actual assets, so any shift in speculation can lead to a price crash. Such a magnitude of decline is uncommon, but once the conflict between Musk and Trump drew public attention, this decline seemed inevitable.
Tesla's stock price declines
Elon Musk's companies were not spared either. Tesla's stock closed down 13% on Thursday. Earlier, Trump hinted at canceling federal contracts for any company under Musk.
Investors worry about loss of income and increased regulatory pressure. Tesla's stock has soared this year, but Trump's angry tweets were enough to shake market confidence. Even a brief comment about X can sway the market—especially when it involves polarizing figures like Trump or Musk.
Cryptocurrency market liquidation
Meanwhile, the broader cryptocurrency market was also impacted. According to Coinglass data, the total daily liquidation reached $982 million. Among them, long liquidations (betting on price increases) totaled $881 million.
Short positions (bets expecting price declines) lost $100 million. Such a large-scale liquidation is shocking and indicates that when big figures clash, emotions can quickly become tense. Bitcoin and many altcoins fell alongside Dogecoin, triggering a series of forced sell-offs.
