Dogecoin tanked 10% today, with its weeklong losses now sitting at 22%, after Elon Musk officially walked away from Donald Trump’s administration and cut ties with the Department of Government Efficiency, known by its ironic acronym, DOGE.
The crash unfolded alongside a brutal political brawl between Elon and the sitting US president, and it dragged the once-beloved meme coin deep into the red.
The drama kicked off earlier this week when Elon took shots at Trump’s latest spending bill. Trump didn’t stay quiet. He hit back by pulling the NASA nomination of Jared Isaacman, Elon’s longtime business ally and the man he wanted leading US space exploration efforts. That withdrawal shattered any illusion of peace between them.
Trump threatens to cancel contracts, Musk responds with Dragon shutdown
By Thursday, the fight turned into a full-on public war. Trump told the press he was “very disappointed” in Elon. Within hours, Elon fired back on X, writing, “Trump would have lost the election without me.” The next reply from Trump? “CRAZY.”
He followed that with a threat to cancel federal contracts held by Elon’s companies. The impact on the market was immediate. Tesla shares fell 14% before closing for the day. Elon didn’t hesitate.
He wrote on X, “Go ahead, make my day,” and then announced that SpaceX would begin shutting down its Dragon spacecraft program. Dragon is the only American spacecraft that transports astronauts to and from the International Space Station.
There was no direct mention of Dogecoin, but it didn’t matter. The coin has never been tied to any real-world value or asset. Instead, it runs on vibes, hype, memes—and above all—Elon’s influence. That’s why this political chaos hit so hard.
Elon leaving Washington means his sway is fading, and Dogecoin holders are taking the hit. In 2022, Dogecoin jumped 15% in a day after Tesla accepted it for merch.
In 2023, Elon replaced the Twitter logo with a shiba inu, the Dogecoin mascot, and the price surged over 30%. Now that Elon is out of Trump’s circle, and contracts are under threat, that same price is collapsing.
Back in November, after Trump’s win, Dogecoin had rallied with other coins like bitcoin, as crypto traders expected a regulation-free environment. That optimism is dead now. With Elon out and government pressure mounting, buyers are paying the price for betting on their bromance.
