Dogecoin Tanks After Trump Contract Threat—Musk Counters With SpaceX Dragon Shutdown

Dogecoin's price nosedived overnight as former President Trump hinted at canceling undisclosed contracts tied to the meme coin. No specifics were given—just classic market-shaking ambiguity from the political arena.

Elon Musk fired back symbolically by halting a SpaceX Dragon mission, because nothing says 'crypto rebellion' like grounding a $200 million spacecraft. Traders scrambled, exchanges glitched, and the usual suspects on Crypto Twitter declared it 'bullish' for decentralized alternatives.

Meanwhile, Wall Street analysts shrugged and recycled their 2021 'told you so' memes. Another day, another volatility feast for the crypto casino.

Trump threatens to cancel contracts, Musk responds with Dragon shutdown

By Thursday, the fight turned into a full-on public war. Trump told the press he was “very disappointed” in Elon. Within hours, Elon fired back on X, writing, “Trump WOULD have lost the election without me.” The next reply from Trump? “CRAZY.”

He followed that with a threat to cancel federal contracts held by Elon’s companies. The impact on the market was immediate. Tesla shares fell 14% before closing for the day. Elon didn’t hesitate.

He wrote on X, “Go ahead, make my day,” and then announced that SpaceX would begin shutting down its Dragon spacecraft program. Dragon is the only American spacecraft that transports astronauts to and from the International Space Station.

There was no direct mention of Dogecoin, but it didn’t matter. The coin has never been tied to any real-world value or asset. Instead, it runs on vibes, hype, memes—and above all—Elon’s influence. That’s why this political chaos hit so hard.

Elon leaving Washington means his sway is fading, and Dogecoin holders are taking the hit. In 2022, Dogecoin jumped 15% in a day after Tesla accepted it for merch.

In 2023, Elon replaced the Twitter logo with a shiba inu, the dogecoin mascot, and the price surged over 30%. Now that Elon is out of Trump’s circle, and contracts are under threat, that same price is collapsing.

Back in November, after Trump’s win, Dogecoin had rallied with other coins like bitcoin, as crypto traders expected a regulation-free environment. That Optimism is dead now. With Elon out and government pressure mounting, buyers are paying the price for betting on their bromance.

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