Trump–Musk Battle Shakes Crypto: Memecoin DOGE Drops 10%

Quick overview

The sharp sell-off in cryptocurrencies reflects the market’s reaction to the public clash between Elon Musk and Donald Trump, which rattled investors on Thursday.

Bitcoin fell 3.1% in the past 24 hours, trading at $101,332 according to Binance.

The downturn extended across the crypto market, with altcoins plunging as much as 9.2%, led by Dogecoin—a memecoin closely associated with Musk. Other major tokens like Avalanche and Solana also tumbled, down 7% and 6.2% respectively.

Musk vs. Trump: A Market-Moving Feud

The turmoil began when Elon Musk ignited a firestorm on X (formerly Twitter), accusing Donald Trump of ties to Jeffrey Epstein and suggesting that was the real reason behind the former President’s silence on the matter. The explosive allegation triggered an immediate response, sending ripples through the markets.

In a series of twelve posts, Musk launched a scathing attack on Trump—a dramatic shift from his past support, when he once described himself as the “first friend” of the former President. Their falling-out appears driven by both political disagreements, such as Musk’s criticism of Trump’s deficit-expanding policies, and personal grievances, including frustration over a rival AI data center deal in the Middle East.

Market Outlook: Caution Amid Volatility

Crypto analysts are sounding the alarm, warning that if tensions between Musk and Trump continue to escalate, Bitcoin could fall below the psychologically important $100,000 level.

Despite its recent rally, Bitcoin now faces both technical and psychological resistance at higher levels. Analysts note that the broader pullback in altcoins suggests investors are rotating their exposure, easing buying pressure on the leading digital asset.

From a technical perspective, Bitcoin recently broke above $110,000 to set new all-time highs. The current pullback is being interpreted as a healthy consolidation after a 50% surge since April lows. Analysts maintain a positive outlook, projecting a potential push toward $120,000 in the near term. On the downside, the key support to watch is $93,600—holding above that level would signal continued strength.

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Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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