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In a dramatic turn of events, the once-close alliance between billionaire entrepreneur Elon Musk and President Donald Trump has unraveled into a highly publicized feud, captivating the attention of both political and financial spheres. The rift, which erupted in early June 2025, has not only highlighted the volatile personalities of two of the world’s most influential figures but also sent shockwaves through the cryptocurrency market, particularly affecting meme coins like Dogecoin and $TRUMP. This article explores the origins, escalation, and broader implications of the Musk-Trump feud, with a specific focus on its impact on the volatile world of digital currencies.
The Genesis of the Feud
The Musk-Trump alliance began as an unlikely but powerful partnership. Musk, the CEO of Tesla, SpaceX, and xAI, threw his support behind Trump during the 2024 presidential campaign, reportedly spending nearly $300 million to back Trump and other Republican candidates. Their camaraderie was on full display, with joint appearances at events like the SpaceX Starship launch in November 2024 and a Tesla showcase on the White House lawn in March 2025. Trump even praised Musk as “one of the greatest business leaders and innovators” during a ceremonial send-off in May 2025, marking the end of Musk’s tenure as a special government employee leading the Department of Government Efficiency (DOGE).
However, tensions began simmering as Musk grew disillusioned with Trump’s economic policies, particularly the president’s “Big, Beautiful Bill,” a sweeping tax and spending package that Musk publicly criticized as a “disgusting abomination” that would balloon the federal deficit. The breaking point came on June 5, 2025, when Musk escalated his attacks on the bill, urging Republican senators to oppose it and hinting at funding campaigns against its supporters. Trump, feeling betrayed, retaliated by suggesting that Musk was upset over the bill’s removal of electric vehicle (EV) tax credits, which benefited Tesla, and threatened to terminate billions in government contracts with Musk’s companies, including SpaceX and Starlink.
The feud quickly turned personal. Musk accused Trump of ties to Jeffrey Epstein, a claim the White House dismissed as baseless, and even endorsed a post calling for Trump’s impeachment. Trump, in turn, labeled Musk “CRAZY” and a “big-time drug addict,” escalating the conflict into a social media war across Musk’s X platform and Trump’s Truth Social. Musk’s now-deleted posts, including one alleging Trump’s involvement in Epstein’s “files,” intensified the drama, though he later backtracked on threats to decommission SpaceX’s Dragon spacecraft, a critical asset for NASA.
The Cryptocurrency Fallout
The Musk-Trump feud has had a tangible impact on the cryptocurrency market, particularly on meme coins like Dogecoin and $TRUMP, which are heavily influenced by sentiment and celebrity endorsements. The crypto market, already volatile, reacted swiftly to the public spat, with prices reflecting the uncertainty surrounding the two figures’ influence.
Dogecoin’s Decline
Dogecoin, a meme coin long championed by Musk, who dubbed it “the people’s crypto,” saw significant losses as the feud unfolded. On June 5, 2025, Dogecoin dropped approximately 10% in a single day, contributing to a weeklong slide of 22%. This decline was closely tied to Musk’s falling political clout following his exit from the Trump administration and his public criticism of the president. Dogecoin’s price has historically been sensitive to Musk’s actions and statements, as evidenced by a 15% surge in 2022 when Tesla began accepting Dogecoin for merchandise. The feud eroded investor confidence, as Musk’s association with Trump had previously fueled optimism about crypto-friendly policies under the administration.
The Department of Government Efficiency, symbolically named DOGE, had been a point of pride for Musk, aligning with his pro-crypto stance. However, his departure and the subsequent feud undermined the narrative of a crypto-friendly administration, leading to a bearish turn in social sentiment around Dogecoin. Traders viewed the spat as a volatility event, with some speculating that Musk’s reduced influence could further depress Dogecoin’s value.
$TRUMP Meme Coin and World Liberty Financial
The feud also impacted $TRUMP, a meme coin tied to the Trump family’s World Liberty Financial (WLFI) venture. Launched in January 2025, $TRUMP is a governance token for WLFI, which also issues a stablecoin called USD1. The coin, heavily promoted by Trump as part of his newfound embrace of cryptocurrency, saw sharp declines as the feud intensified. Posts on X noted a bearish shift in sentiment, with traders accusing the Trump family of orchestrating a “cash grab” through the coin’s auction for a private dinner with the president, raising ethical concerns about pay-to-play schemes.
The $TRUMP coin’s structure, with 80% of its billion coins held by Trump-related entities, has drawn scrutiny for potential conflicts of interest, particularly as major buyers included foreign investors like Chinese crypto entrepreneur Justin Sun and Abu Dhabi-based firms. The feud with Musk, a prominent crypto advocate, further complicated the narrative, as his criticisms of Trump’s policies cast doubt on the administration’s commitment to deregulation, a key driver of crypto optimism. The CoinDesk 20 index, tracking major cryptocurrencies, fell over 5% during the feud, with Bitcoin dropping below $101,000 and other tokens like SOL and SUI losing more than 7%.
Broader Market Implications
The Musk-Trump feud has broader implications for the cryptocurrency industry, which had anticipated a boon under Trump’s administration due to his pro-crypto appointments, such as Paul Atkins for SEC chairman and Howard Lutnick for commerce secretary. Musk’s vocal support for deregulation and his influence in Silicon Valley had bolstered hopes for a crypto-friendly policy environment. However, his falling out with Trump raised concerns about potential regulatory retaliation, particularly as Trump threatened to cut Musk’s government contracts, which could indirectly affect his ability to advocate for crypto.
Additionally, the feud highlighted the risks of relying on influential figures like Musk and Trump to drive crypto valuations. Meme coins, in particular, thrive on hype and social media sentiment, making them vulnerable to the erratic behavior of their proponents. The public nature of the feud, amplified by X and Truth Social, turned it into a “volatility event” that traders capitalized on, but it also underscored the fragility of crypto markets tied to political and personal dynamics.
The Bigger Picture
The Musk-Trump feud is more than a clash of egos; it exposes the vulnerabilities of intertwining public policy with private interests. Musk’s extensive government contracts, from SpaceX’s role in NASA missions to Starlink’s federal broadband subsidies, make his businesses susceptible to political fallout. Similarly, Trump’s foray into cryptocurrency, particularly through WLFI and $TRUMP, raises ethical questions about leveraging the presidency for personal gain, especially with foreign investments in the mix.
For the crypto market, the feud serves as a reminder of its susceptibility to external shocks, particularly those driven by high-profile figures. While Dogecoin and $TRUMP bore the brunt of the immediate fallout, the broader market felt the ripple effects, with investor confidence shaken by the uncertainty of a fractured alliance that once promised to reshape the regulatory landscape.
Conclusion
The Elon Musk and Donald Trump feud, sparked by disagreements over a massive budget bill, has reverberated beyond the political arena, significantly impacting the cryptocurrency market. Dogecoin and $TRUMP, emblematic of the meme coin phenomenon, have seen sharp declines as investor sentiment soured, reflecting the market’s sensitivity to the public personas of Musk and Trump. As both men continue to wield influence over their respective domains—technology and politics—the crypto industry must navigate the fallout, bracing for potential regulatory shifts and ongoing volatility. This high-stakes drama underscores the precarious intersection of personality-driven markets and political power, leaving investors to tread carefully in an already unpredictable landscape.
This article reflects the opinions of the publisher based on available information at the time of writing. It is not intended to provide financial advice, and it does not necessarily represent the views of the news site or its affiliates. Readers are encouraged to conduct further research or consult with a financial advisor before making any investment decisions.
