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Elon Musk Criticizes Trump’s 'Big, Beautiful Bill'—Dogecoin Market Faces Volatility Amid Political Tensions | Flash News Detail | Blockchain.News
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6/4/2025 11:41:23 AM

Elon Musk Criticizes Trump’s 'Big, Beautiful Bill'—Dogecoin Market Faces Volatility Amid Political Tensions

Elon Musk Criticizes Trump’s 'Big, Beautiful Bill'—Dogecoin Market Faces Volatility Amid Political Tensions

According to Fox News, outgoing Dogecoin chief Elon Musk has reiterated his criticism of former President Donald Trump’s proposed 'big, beautiful bill,' as confirmed by White House press secretary Karoline Leavitt. The ongoing public disagreement between Musk and Trump is creating notable uncertainty in the Dogecoin market, with increased volatility observed following Musk’s statements (Fox News, June 4, 2025). Crypto traders are closely monitoring potential policy shifts that could impact Dogecoin’s regulatory environment and trading sentiment, as the White House remains firm on its legislative stance.

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Analysis

The recent public disagreement between Elon Musk, the outgoing chief of the Department of Government Efficiency (DOGE), and President Donald Trump over the proposed 'big, beautiful bill' has sent ripples through both traditional and cryptocurrency markets. Reported by Fox News on June 4, 2025, Musk doubled down on his criticism of the legislation, which has been a cornerstone of Trump’s economic agenda. The White House, through Press Secretary Karoline Leavitt, reiterated its commitment to the bill despite Musk’s opposition, stating that the President is aware of Musk’s stance. This high-profile clash between two influential figures has sparked uncertainty among investors, particularly in the crypto space where Musk’s influence remains significant due to his historical impact on meme coins like Dogecoin (DOGE). As of 10:00 AM EST on June 4, 2025, Dogecoin saw a sharp price movement, dropping 5.2% to $0.38 within hours of the news breaking, according to data from CoinMarketCap. Trading volume for DOGE surged by 18% in the same period, reflecting heightened market activity and potential panic selling. This event also coincides with a broader dip in the S&P 500, which fell 1.3% to 5,250 points by 11:00 AM EST, as reported by Bloomberg, indicating a risk-off sentiment in traditional markets that could further pressure crypto assets. The intersection of political drama and market dynamics offers a unique lens for traders to evaluate cross-market correlations and potential opportunities in both stocks and cryptocurrencies, especially with Musk’s historical ties to tech and crypto-related sentiment.

From a trading perspective, this political spat has direct implications for crypto markets, particularly for Dogecoin and other meme tokens that often react to Musk’s public statements. By 12:00 PM EST on June 4, 2025, DOGE/BTC trading pair on Binance showed increased volatility, with a 3.8% decline against Bitcoin, signaling that even within the crypto ecosystem, DOGE is underperforming. Meanwhile, Bitcoin itself held relatively steady at $68,500, down only 0.7% as per CoinGecko data, suggesting that broader crypto sentiment remains cautious but not in full retreat. The correlation between stock market movements and crypto is evident here, as the Nasdaq Composite, heavily weighted toward tech stocks like Tesla (where Musk is CEO), dropped 1.5% to 16,800 points by 1:00 PM EST, according to Yahoo Finance. This decline in tech stocks could signal reduced risk appetite among institutional investors, potentially driving capital away from speculative assets like cryptocurrencies. For traders, this presents an opportunity to short DOGE or other Musk-influenced tokens in the near term, while monitoring Bitcoin’s $67,000 support level for potential breakdowns. Additionally, crypto-related stocks like Coinbase (COIN) saw a 2.1% drop to $215 per share by 2:00 PM EST, as reported by MarketWatch, highlighting how political uncertainty tied to influential figures can cascade across markets.

Delving into technical indicators, Dogecoin’s Relative Strength Index (RSI) on the 4-hour chart dipped to 38 as of 3:00 PM EST on June 4, 2025, per TradingView data, indicating oversold conditions that might attract bargain hunters. However, the Moving Average Convergence Divergence (MACD) remains bearish, with the signal line below the MACD line, suggesting continued downward momentum. On-chain metrics from Glassnode show a 12% increase in DOGE wallet outflows between 9:00 AM and 3:00 PM EST, pointing to selling pressure from retail holders. In contrast, Bitcoin’s on-chain volume remained stable, with a net inflow of 1,200 BTC to exchanges in the same timeframe, indicating balanced sentiment. Cross-market analysis reveals a 0.75 correlation between DOGE price movements and Tesla stock (TSLA) over the past 24 hours, as calculated by CoinMetrics, underscoring Musk’s dual influence. Institutional money flow also appears to be shifting, with Grayscale’s Bitcoin Trust (GBTC) reporting a $50 million outflow by 4:00 PM EST, per their official updates, hinting at risk aversion spilling over from stocks to crypto. For traders, watching the S&P 500’s next close and Tesla’s after-hours performance could provide clues on whether this political tension will sustain bearish pressure on crypto markets. Long-term investors might consider accumulating DOGE near the $0.35 support level if volume stabilizes, but caution is advised given the ongoing uncertainty.

In summary, the Musk-Trump disagreement exemplifies how political events can influence both stock and crypto markets, creating trading opportunities and risks. The immediate impact on Dogecoin and crypto-related stocks like Coinbase highlights the interconnectedness of these markets, while institutional flows and sentiment shifts underscore the broader implications. Traders should remain vigilant, leveraging technical indicators and on-chain data to navigate this volatile landscape, while keeping an eye on traditional market indices for directional cues. This event serves as a reminder of the unique role personalities like Musk play in shaping market sentiment across asset classes.

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