Dogecoin, Cardano Drop 7%, 6.5% Amid Recession Fears, Trump-Musk Feud

Dogecoin (DOGE) and Cardano's ADA experienced significant declines on Friday, with DOGE tumbling nearly 7% and ADA sliding 6.5% within a 24-hour period. This downturn reflected a broader risk-off sentiment among crypto traders, who were digesting mixed macroeconomic data and growing concerns about a potential recession. The escalating feud between President Donald Trump and tech titan Elon Musk further exacerbated these concerns, with Musk warning that the U.S. is likely headed for a technical recession this year.

The spat between Musk and Trump rattled market confidence, as the quarrel exposed divides that could hinder plans to reform the U.S. economy. This uncertainty weighed heavily on speculative assets, including cryptocurrencies. Despite the overnight drop, some analysts remained optimistic about the long-term viability of crypto markets. Jeff Mei, COO at BTSE, noted that the success of Circle's IPO indicated continued institutional interest in the crypto space. Similarly, Nick Ruck, director at LVRG Research, pointed out that while recent macroeconomic reports and political tensions influenced the sell-off, the long-term outlook for crypto remains positive as institutions continue to build within the ecosystem.

Bitcoin (BTC) briefly bounced above $102,000 in Asian morning hours after falling to near $101,000 on Thursday night. Other major cryptocurrencies, including ether (ETH), XRP, BNB Chain’s BNB, and Solana’s SOL, also experienced declines ranging from 2% to 5%. Traders are now cautiously awaiting clarity on the debt ceiling debate and the potential impact of Trump’s proposed “One Big Beautiful Act” on fiscal policy. The market remains sensitive to political developments and macroeconomic indicators, which could continue to influence crypto prices in the near term.