Trump-Musk fallout sends shockwaves through crypto market

Dogecoin has plunged 22% over the past week amid escalating tensions between Tesla CEO Elon Musk and U.S. President Donald Trump, CNBC reported. The fallout began with Musk’s departure from the Trump administration’s Department of Government Efficiency (DOGE) and his sharp criticism of Trump’s spending bill, followed by Trump withdrawing the NASA nomination of Musk ally Jared Isaacman. Their feud intensified on June 5, when Trump vowed to cancel Musk’s government contracts, triggering a 14% drop in Tesla’s stock. Musk fired back by announcing that SpaceX would begin decommissioning its Dragon spacecraft. While Dogecoin has no intrinsic value, its price remains highly reactive to Musk-related news, making it especially vulnerable to the political rift. The token had previously surged alongside Bitcoin and other cryptocurrencies after Trump’s election victory, driven by expectations of pro-crypto policies. Now, investors are feeling the sting of fading optimism.