In just 24 hours, a public spat between U.S. President Donald Trump and tech billionaire Elon Musk sent shockwaves through crypto markets.
The Official Trump (TRUMP) token lost $233 million in market value. Dogecoin (DOGE) followed suit. Their feud, which began this week when Musk criticized Trump’s flagship tax and spending bill, has morphed into a wider story about how political dramas can sway digital assets.
Political Rift Sparks Crypto Volatility
On June 5, 2025, Elon Musk took to X (formerly Twitter) to lambast one of Trump’s spending proposals. Trump responded later the same day, calling Musk “disappointing” and suggesting their “great relationship” was over.
Source: CoinMarketCap
Musk fired back on May 23, accusing Trump of “ingratitude” and claiming that without him, Trump “would have lost the election.”
Source: X
Within hours, traders shifted positions. The Official Trump token’s market capitalization fell from $2.168 billion to $1.935 billion—an 11 percent swing that erased $233 million in value, according to CoinMarketCap data.
TRUMP’s price slid from $10.83 to $9.66, a daily drop of 10.74 percent and a weekly decline of 15.58 percent. Trading volume surged to $876.85 million, up 211.87 percent in 24 hours.
Meme Coins Under Pressure
Musk’s beloved Dogecoin also felt the fallout. DOGE slipped 7.1 percent over the same 24-hour span. Volume on DOGE jumped to nearly $2 billion, a 149.75 percent increase, per CoinMarketCap data. The surge in trading activity suggests a knee-jerk reaction to Musk’s polemics.
Both tokens illustrate how “narrative-driven” assets can be. TRUMP and DOGE, once buoyed by social media hype and celebrity endorsements, remain vulnerable to abrupt shifts in sentiment.
These two tokens rank among the worst performers in the top 100 cryptocurrencies by market capitalization.
Mega Caps: More Than Just Meme Coins
The Trump–Musk feud did not confine its effects to TRUMP and DOGE. Several large-cap tokens saw muted but noticeable moves on May 23. Cardano (ADA) dipped 2.3 percent.
Solana (SOL) fell 1.8 percent. Ethereum (ETH) lost 1.2 percent. Trading volumes for these altcoins rose between 15 and 40 percent, signaling traders hedging or rebalancing against the sudden narrative shift.
Meanwhile, megacap assets like Bitcoin (BTC) and Ethereum—which together account for over 60 percent of total crypto market capitalization—saw slight volatility but maintained upward trajectories.
For now, traders watch the headlines closely. Each tweet from Trump or Musk carries an immediate market impact. The Official Trump token traded at $9.66—down 10.74 percent for the day—while Dogecoin hovered at $0.317, off 7.1 percent. These moves underscore how real-world politics can shape on-chain valuations in minutes.
