Musk leaves DOGE, clashes with Trump—Dogecoin caught in the crossfire

Dogecoin has been heavily impacted this week as tensions flared between Elon Musk and U.S. President Donald Trump. Prices have fallen sharply and red numbers dominate the market. Traders who followed the hype have found themselves in a losing position. It is a week that many will remember for the intersection of politics and memes in unexpected ways. Musk And Trump Clash According to public posts, Elon Musk has officially left the Government Efficiency Department (DOGE) on Thursday. This move comes after he criticized Trump's spending bill. He has co-led that department since the end of 2024. The rift between them became more tense after Trump said he was "very disappointed" in Musk.

In response, Musk declared that Trump would not win the election without his support. Then, Trump called Musk "INSANE" and threatened to cancel contracts with Tesla and SpaceX. Musk replied to X with the phrase, "Go ahead, make me happy." He even warned that he might stop the operations of SpaceX's Dragon spacecraft. Musk mentioned Epstein's documents Based on posts on X, Musk also said that Jeffrey Epstein's case files are still kept secret because Trump's name appears in them. That statement added another layer of hostility. It's not just about spending anymore. Now there is an accusation involving the President of the United States in the secret investigation into Epstein. Trump responded that he would cancel any contracts with Musk's companies.

The price of Dogecoin has fallen sharply. According to reports, Dogecoin has fallen about 11% just on Thursday. Over the past week, it has decreased 16% from its recent high. Traders point out that Musk's departure from politics is a key factor. Many people still consider Dogecoin as "the people's cryptocurrency" due to Musk's initial support. But without his backing in that government role, sentiment quickly turns sour.

This is a coin that has no real assets behind it, so any changes in the hype can cause the price to fall sharply. A drop like this is very rare, but it seems to be inevitable as the discord between Musk and Trump spreads to the public. Tesla stock falls Elon Musk's companies are not exempt from the consequences either. Tesla's stock closed down 13% on Thursday. This decline occurred after Trump signaled that he would withdraw federal contracts from any company owned by Musk.

Investors are concerned about lost revenue and tighter oversight from regulators. Tesla's stock has risen high this year, but Trump's angry tweets have been enough to shake confidence. Even a short phrase on X can change the market—especially when it involves a divisive figure like Trump or Musk. Liquidation of the cryptocurrency market Meanwhile, the broader cryptocurrency market is also feeling a shock. According to Coinglass data, the total liquidation amount reached $982 million in just one day. Among that, long liquidations—betting on price increases—totaled $881 million. Short positions, or bets expecting prices to fall, have seen a loss of $100 million. That level of liquidation is astounding and shows how quickly tensions can escalate when major players clash. Bitcoin and many altcoins slid in price along with Dogecoin, creating a cascading reaction of forced selling.