According to CNBC, the Dogecoin cryptocurrency experienced a significant 10% drop yesterday. This decline followed Elon Musk's formal departure from Donald Trump's administration and the Department of Government Efficiency, as well as a recent public dispute between the two over tax reforms on social media.
Analysts note that Dogecoin remains a highly volatile asset which price fluctuates based on external events. Musk's public endorsement has long been a key driver of its value, making the meme coin particularly sensitive to changes in his political standing. For example, DOGE surged over 15% in a single day in 2022 when Tesla began accepting it as payment for select merchandise.
The coin had previously rallied alongside other cryptocurrencies following Trump's election victory last November, when investors anticipated pro-crypto policies from the new administration.