Trump Token Plummets 10.74% Amid Musk Feud

The Official Trump (TRUMP) token has experienced a significant decline, becoming the worst-performing cryptocurrency among the top 100 by market capitalization. This downturn is attributed to the escalating public feud between former U.S. President Donald Trump and tech billionaire Elon Musk, which has spilled over into the crypto markets.

Over the past 24 hours, TRUMP’s market capitalization plummeted from $2.168 billion to $1.935 billion, resulting in a loss of $233 million in value. At the time of writing, TRUMP is trading at $9.66, reflecting a 10.74% decline for the day and a 15.58% drop over the past week. This sell-off coincides with a dramatic surge in trading activity, with 24-hour volume soaring to $876.85 million, up 211.87%.

The rift between Trump and Musk, who were once unlikely allies, intensified after Musk publicly criticized one of Trump’s flagship tax and spending bills. In response, Trump expressed disappointment with Musk and hinted at the potential end of their relationship. Musk retaliated by accusing Trump of ingratitude and suggesting that without his support, Trump would have lost the election.

Interestingly, Dogecoin (DOGE), a cryptocurrency long championed by Musk, also featured among the top five crypto losers in the past 24 hours. DOGE is down 7.1% over the same period, with trading volume soaring to nearly $2 billion, a 149.75% increase. The rapid decline in TRUMP’s and DOGE’s prices highlights how closely some cryptocurrencies are tied to online sentiment and how vulnerable they can be to sudden shifts in public narrative.

The surge in trading volume suggests that both retail traders and larger market participants were quick to react to the headlines, with some likely cashing out and others attempting to trade the volatility. Both TRUMP and DOGE represent tokens with strong cultural and narrative-driven investor bases, meaning they are more prone to sharp moves when narratives shift.

With Trump and Musk continuing to trade barbs across the platforms they each control, it remains unclear whether this feud will cool or continue to drive volatility. For now, the Official Trump token remains highly reactive to the political drama, while Dogecoin traders appear to be watching closely for further Musk comments that could sway its short-term price direction.

This situation underscores the interconnected nature of the financial markets, where events in one sector can have far-reaching consequences in others. The ongoing feud between Trump and Musk serves as a reminder of the influence that high-profile figures can have on the cryptocurrency market and the importance of staying informed about the latest developments.