Trump-backed $TRUMP has tumbled alongside Dogecoin—often favored by Musk—as tensions between the two influential figures escalate, leaving investors scrambling for clarity.
What began as a policy disagreement over Trump’s signature tax and spending bill escalated into a very public feud, leaving financial markets jittery. The conflict has already wiped out billions in market value.
The $TRUMP meme coin was trading at around $9.82, down 9.50% in the last 24 hours at press time. Source: Brave New Coin
Trump’s namesake meme coin, $TRUMP, plunged nearly 10% in 24 hours and is now down 87% from its all-time high on Inauguration Day. Similarly, Dogecoin (DOGE), often associated with Musk, dropped 6% on the same day, continuing its long descent from its peak in 2021.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump posted on Truth Social, implying potential federal action against Musk’s companies. This thinly veiled threat rattled investors who had long bet on Musk’s close ties to Washington.
Tesla wasn’t spared. The electric vehicle maker saw its stock plunge over 14% in one trading session, wiping out $150 billion in market value. While some of the drop may be attributed to regulatory uncertainty around Tesla’s upcoming robotaxi program, analysts believe the feud with Trump was a significant trigger.
Tesla plunged 14% after Musk’s remarks on Trump’s tax bill and Epstein files, with the stock now testing key support between $275 and $290. Source: QuantScraper via X
“There is a fear that Trump is not going to play Mr. Nice Guy,” said Dan Ives, a tech analyst at Wedbush Securities. “If you start to heighten the regulatory environment, that could delay Tesla’s roadmap for autonomous driving.”
In after-hours trading, Tesla saw a modest 0.8% rebound, but the damage had been done.
The sharp declines in $TRUMP and Dogecoin are a stark reminder of how susceptible meme coins are to sentiment and social media-driven volatility. Kevin Rusher, founder of Real World Asset, described the market’s reaction as both “annoying and revealing.”
“It’s annoying because we’re still letting loud personalities move the market,” Rusher said. “Revealing, because it shows the crypto ecosystem is still fragile and in desperate need of liquidity.”
Bitcoin (BTC) was trading at around $105,023 at press time. Source: Bitcoin Liquid Index (BLX) via Brave New Coin
While Bitcoin (BTC) was relatively more stable, dipping just under 2%, some analysts warn that the ongoing uncertainty could lead to further short-term pain.
“Bitcoin is testing the $100,000 support level,” noted Nic Puckrin, founder of Coin Bureau. “If we see a break below, there could be more downside. That said, a close above $102,000 would suggest the worst of the sell-off is behind us.”
The Trump-Musk fallout is more than a billionaire brawl—it’s a collision of politics and markets. Tesla’s recent stock gains were largely driven by investor optimism that the Trump administration would support autonomous vehicle innovation. Musk’s public distancing from Trump and vocal criticism of government policies have now called that support into question.
The clash between Trump and Elon Musk reflects a power struggle between two controversial and polarizing figures driven by ambition and influence. Source: Bill Madden via X
Tesla’s future is deeply tied to its ambitions in driverless technology. Any perceived friction with federal regulators or funding bodies could slow deployment and erode investor confidence.
Meanwhile, Trump’s threat to cut off government contracts could have broader implications for Musk’s other ventures, including SpaceX and Starlink, both of which have benefited from U.S. contracts and diplomatic support abroad.
The fallout has even reached meme coin culture. A satirical coin named “Kill Big Beautiful Bill,” mocking Trump’s tax plan, surged 360% on Pump.fun, reflecting how quickly crypto communities latch onto political drama.
Dogecoin (DOGE) was trading at around $0.17, down 8.98% in the last 24 hours at press time. Source: Brave New Coin
As of now, attempts to mediate the feud appear unsuccessful. Reports suggest that Trump remains unwilling to reconcile, despite efforts from other prominent figures, including billionaire investor Bill Ackman.
As investors continue to digest the implications of the Musk–Trump fallout, the message is clear: politics and personality still wield outsized influence over markets driven by hype and speculation.
For now, $TRUMP and Dogecoin holders are caught in the crossfire, while Tesla and the broader crypto space brace for more turbulence.
“The only predictable thing in this cycle is volatility,” said Puckrin. “And we’re just getting started.”
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