Key Points
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Dogecoin's most high-profile backer, Elon Musk, is once again in the midst of a public feud with the president.
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Trump called for DOGE to review the subsidies received by Musk's many companies.
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Dogecoin's performance has been closely tied to Musk's relationship with the president.
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10 stocks we like better than Dogecoin ›
The price of Dogecoin (CRYPTO: DOGE) is sinking on Tuesday. The meme coin saw its value decline 4.6% from Monday at 4 p.m. ET to 12:43 p.m. ET Tuesday. The drop comes as the S&P 500 lost 0.2% and the Nasdaq Composite lost 0.8%.
Dogecoin's most prominent backer, Elon Musk, is once again involved in a public spat with President Donald Trump.
The Musk-Trump feud reignites
Musk's unofficial role as the "Dogefather" has left the cryptocurrency tied to Musk's public actions. His backing of Trump's presidential run and subsequent place in his administration as the head of the Department of Government Efficiency (DOGE) -- a not-so-subtle wink to Dogecoin -- propelled Dogecoin to heights not seen since 2021. The price more than doubled in the days following the election.
Image source: Getty Images. Musk left DOGE after a public spat with Trump, which has been mostly dormant for the last month. However, yesterday the feud reignited with a fresh round of attacks from Musk of Trump's One, Big, Beautiful Bill. This garnered a response from Trump that included the president calling for DOGE to review the subsidies Musk's companies receive, saying there is "BIG MONEY TO BE SAVED!!!"
Dogecoin isn't a serious investment
Dogecoin is a meme coin. Its value is derived not from utility, but from vibes. That makes it incredibly volatile and subject to wild swings in price. Its recent price appreciation was built entirely on the hype that surrounded Musk's place at Trump's side, so when that goes away, so does the hype. I would not put my money in Dogecoin.
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Why Dogecoin Is Sinking Today was originally published by The Motley Fool
Dogecoin's recent decline today may be attributed to the volatile nature of cryptocurrency markets along with an overall pessimistic sentiment in investment, coupled by limited fundamental progress within its network or lackluster demand from users.
Dogecoin's current decline today can be primarily attributed to broader market volatility, combined with the lack of major updates or developments that would typically lift its value in comparison.
Dogecoin's recent downturn can be partly归因于加密货币市场整体情绪的消极波动以及缺乏新的正面发展动向，导致投资者信心下滑。
The recent decline in Dogecoin's value is likely attributed to the overall crypto market volatility and lack of immediate positive news developing within its community; further underscoring how intrinsically linkedDogcoin remains tied with broader industry trends.
Despite being created with humorous goals, the recent decline of Dogecoin suggests a deeper analysis is needed regarding its underlying fundamentals and market conditions.
Dogecoin's current dip in value can partly be attributed to the overall crypto market volatility, as well a relatively slower adoption rate compared with other popular coins.
Dogecoin's recent slide can largely be attributed to the market-wide cryptocurrency correction and lack of significant development news or community engagement, causing investors confidence in its future prospects to wane.
The sudden drop in Dogecoin's value today is attributed to a combination of increased selling pressure, lackluster news regarding future adoption prospects coupled with wider market trends affecting similar cryptocurrencies.
