Dogecoin Plummets 16% Amid Musk Trump Feud

Elon Musk's departure from the Department of Government Efficiency (DOGE) and his subsequent clash with former US President Donald Trump sent shockwaves through the cryptocurrency market, particularly affecting Dogecoin. Musk's exit from DOGE came after he publicly criticized Trump's spending bill, leading to a heated exchange between the two influential figures. Trump expressed disappointment in Musk, while Musk retaliated by claiming that Trump's election victory was partly due to his support. The feud escalated when Musk alleged that documents related to Jeffrey Epstein's case remained sealed because Trump's name was mentioned in them. Trump responded by threatening to cancel contracts with Musk's companies, Tesla and SpaceX.

Dogecoin, which had been riding high on the back of Musk's early support and endorsement, took a significant hit. The cryptocurrency fell about 11% on Thursday alone and was down 16% from its recent highs over the past week. The market sentiment soured quickly as traders saw Musk's political exit as a key factor in the price decline. Dogecoin, often referred to as "the people’s crypto," relies heavily on hype and public sentiment, making it vulnerable to shifts in perception and support.

Tesla, one of Musk's flagship companies, also felt the impact of the feud. Tesla's stock closed down 13% on Thursday following Trump's threat to pull federal contracts. Investors were concerned about potential lost revenue and increased regulatory scrutiny, leading to a significant drop in share prices. The broader crypto market was not spared from the fallout, with total liquidations reaching a substantial amount in a single day. Long liquidations, which are bets on rising prices, totaled a significant figure, while short positions saw losses as well. This level of liquidation highlighted the market's sensitivity to the actions and statements of influential figures like Musk and Trump.

The clash between Musk and Trump underscored the intersection of politics and meme culture, with Dogecoin caught in the crossfire. The feud not only affected the cryptocurrency market but also had broader implications for Musk's companies and the overall sentiment in the tech and investment sectors. The incident served as a reminder of how quickly market dynamics can change in response to high-profile conflicts and the influence of key figures in the industry.