DOGE, ADA Lead Crypto Slide as Musk-Trump Feud Sparks Recession Fears
Cryptocurrency markets slipped Friday as traders weighed growing macroeconomic uncertainty alongside a very public clash between President Donald Trump and Tesla CEO Elon Musk.
Dogecoin (DOGE) and Cardano (ADA) were among the worst performers, falling 6.9% and 6.5%, respectively, over the past 24 hours. The pullback comes amid broader market caution triggered by recession warnings and ongoing political drama.
The tension between Trump and Musk reached new heights Thursday, culminating in Musk’s stark prediction on X (formerly Twitter) that recently proposed tariffs could push the U.S. into a technical recession in the second half of 2025.
“The Trump tariffs will cause a recession in the second half of this year,” Musk posted, rattling investor confidence and contributing to the crypto market’s risk-off tone.
Market Snapshot
- Bitcoin (BTC) recovered slightly to trade above $102,000, after briefly dipping below $101,000.
- Ethereum (ETH) hovered around $2,485, while other major tokens like XRP, BNB, and Solana (SOL) posted losses between 2%–5%.
Political Tensions Add to Market Unease
Market watchers say the Musk-Trump dispute, while personal, could have broader implications for economic reform and investor sentiment.
“The quarrels between Elon Musk and President Trump expose fractures that may complicate upcoming fiscal policies,” said Jeff Mei, COO of BTSE. “That uncertainty contributed to the crypto sell-off overnight.”
However, Mei emphasized long-term optimism, citing strong institutional support — including Circle’s successful IPO — as a sign of resilience in the digital asset space.
Analysts Warn of Macro and Political Spillover
Nick Ruck, director at LVRG Research, noted that while recent economic indicators have contributed to the market downturn, “the overriding factor appears to be the Musk-Trump feud.”
“Investors are increasingly concerned that political infighting could spill into markets more broadly,” Ruck told CoinDesk. “Still, we remain bullish long-term as institutional engagement continues to deepen.”
Traders are now watching closely for developments around the U.S. debt ceiling and Trump’s proposed ‘One Big Beautiful Act’, which could significantly impact fiscal and monetary conditions heading into Q3.
