Trump-Musk Clash Drives Dogecoin 10% Drop, Rippled Crypto Markets

The public feud between President Donald Trump and Elon Musk has caused significant turmoil in the cryptocurrency market, particularly impacting meme coins like Dogecoin (DOGE), which fell sharply amid the spat. The conflict escalated after Musk criticized Trump's economic policies, including the “One Big Beautiful Bill” and proposed tariffs, which Musk warned could trigger a recession. Musk's departure from the Trump-led Department of Government Efficiency (DOGE) and his harsh criticisms—including accusing Trump of undermining government spending cuts—have intensified tensions, leading to a surge in meme coins themed around their dispute. Despite Musk's earlier support for Trump, their relationship deteriorated over political and personal disagreements, affecting investor sentiment and causing notable price volatility across crypto assets like Bitcoin, Dogecoin, Avalanche, and Solana. The feud also spilled into government contracts, with Musk threatening to decommission SpaceX’s Dragon spacecraft following Trump's threats to cancel contracts amid their verbal exchanges. Overall, the Musk-Trump fallout has introduced uncertainty in the crypto market, with analysts cautioning that continued conflict could push Bitcoin below key psychological levels and fuel further instability in the meme coin sector.