Trump-Musk Feud Erases $233 Million from TRUMP Token Value

In a span of just 24 hours, a public dispute between U.S. President Donald Trump and tech billionaire Elon Musk sent ripples through the crypto markets. The Official Trump (TRUMP) token experienced a significant loss in market value, amounting to $233 million. Dogecoin (DOGE) also felt the impact, as the feud between the two influential figures began when Musk criticized one of Trump’s spending proposals. This political drama has highlighted how digital assets can be swayed by real-world political events.

On June 5, 2025, Elon Musk used the platform X (formerly Twitter) to criticize one of Trump’s spending proposals. Trump responded later the same day, expressing disappointment in Musk and suggesting that their relationship had soured. Musk retaliated by accusing Trump of ingratitude, claiming that without his support, Trump would not have won the election. This exchange quickly escalated, leading to significant shifts in the crypto market.

Within hours of the exchange, traders began to adjust their positions. The Official Trump token’s market capitalization dropped from $2.168 billion to $1.935 billion, resulting in an 11 percent swing that erased $233 million in value. The token’s price fell from $10.83 to $9.66, marking a daily drop of 10.74 percent and a weekly decline of 15.58 percent. This sudden shift in value underscores the volatility of narrative-driven assets, which are heavily influenced by social media hype and celebrity endorsements.

Musk’s beloved Dogecoin also faced the repercussions of the feud. DOGE slipped 7.1 percent over the same 24-hour period. The surge in trading activity suggests a knee-jerk reaction to Musk’s comments, highlighting the sensitivity of these assets to sudden shifts in sentiment. Both TRUMP and DOGE rank among the worst performers in the top 100 cryptocurrencies by market capitalization, illustrating their vulnerability to external factors.

The Trump–Musk feud did not limit its effects to TRUMP and DOGE. Several large-cap tokens also saw noticeable movements. Cardano (ADA) dipped 2.3 percent, Solana (SOL) fell 1.8 percent, and Ethereum (ETH) lost 1.2 percent. Trading volumes for these altcoins rose between 15 and 40 percent, indicating that traders were hedging or rebalancing their portfolios in response to the sudden narrative shift. Meanwhile, megacap assets like Bitcoin (BTC) and Ethereum, which together account for over 60 percent of the total crypto market capitalization, saw slight volatility but maintained their upward trajectories.

For now, traders are closely monitoring the headlines, as 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, highlighting the interconnectedness of digital assets and political events.