NOIDA (CoinChapter.com) — Dogecoin is bleeding again, falling well below its late-2024 peaks, and the reason is painfully clear: Elon Musk’s influence is no longer a blessing but a liability. Once the ultimate market-moving force behind DOGE, Musk has now become its biggest problem.
His once-unstoppable charisma, which turned a meme coin into a top-10 digital asset, has given way to political turmoil, controversial government policies, and a fading ability to inspire investor confidence.
As of March 10, 2025, Dogecoin is struggling to stay afloat amid Musk’s latest battles—not on X, not at Tesla, but in Washington, D.C. His role in the Trump administration, specifically his leadership of the Department of Government Efficiency (D.O.G.E.), has unleashed a wave of economic uncertainty that spooked markets and drained liquidity from speculative assets like Dogecoin.
Instead of celebrating Musk’s latest moves, investors now fear the consequences of his aggressive cost-cutting agenda. The same Musk who once sent Dogecoin soaring with a single tweet is now inadvertently sinking it. The irony is brutal: DOGE (the government initiative) is killing DOGE (the cryptocurrency).
Musk’s Government Crusade is Wrecking Dogecoin’s Value
Elon Musk was once the godfather of Dogecoin’s meteoric rise. In 2021, his tweets, branding himself “The Dogefather” and teasing DOGE as a Tesla payment option transformed the joke cryptocurrency into a top-tier asset. The formula was simple: Musk tweeted, DOGE pumped.
That reality has changed. The same Musk who once elevated Dogecoin is now its biggest problem. His growing political entanglements, particularly his Department of Government Efficiency (DOGE) leadership, have rattled investor sentiment instead of reinforcing it.
As Musk shifted from meme king to a controversial political figure cutting federal jobs and battling Trump’s cabinet, Dogecoin’s price action reflected the fallout.
The chart makes it undisputable—Dogecoin’s greatest rallies have coincided with Musk’s most favorable public moments, while its sharpest declines have mirrored his missteps and distractions.
The May 2021 spike to $0.68 was driven by Musk’s SNL appearance, which fueled mass speculation that he would push DOGE into mainstream adoption. The moment he failed to deliver, the coin crashed hard.
In October 2022, Dogecoin rallied again when Musk acquired Twitter, as traders speculated that the platform would integrate DOGE payments.
The downturn in May 2023 came after Musk removed Dogecoin’s logo from Twitter/X, signaling a shift in priorities that disappointed investors.
The most recent collapse in February 2025 aligns with Musk’s push for mass layoffs in the federal workforce under his government initiative. Instead of creating confidence in his leadership, Musk’s economic policies have fueled uncertainty, pulling DOGE down.
This is no longer speculation—it’s a pattern. Dogecoin rises when Musk dominates and falls when his credibility weakens. In 2021 and 2022, Musk was a market-moving force. In 2025, he is a political lightning rod, drawing criticism from Trump’s cabinet members and losing influence over traders.
Furthermore, Musk’s clash with Marco Rubio in a White House cabinet meeting was defining. Investors noticed—and Dogecoin’s decline only accelerated.
A Coin at the Mercy of One Man’s Reputation
Unlike Bitcoin or Ethereum, which have deep institutional backing and robust fundamentals, Dogecoin has always been a one-man show. It didn’t gain value through innovation or development; it rode Musk’s hype train.
Dogecoin’s price history is a direct reflection of Musk’s public standing.
The economic uncertainty created by Musk’s government efficiency initiative (DOGE) has hurt his credibility, but more importantly, it has diverted his attention away from crypto. Musk, who once joked about sending DOGE to the moon, is now embroiled in White House infighting, labor disputes, and market instability.
Dogecoin’s problem is that it never stood on its own. It thrived because Musk made it thrive. Now, with his focus divided between Tesla, SpaceX, X, and his political ambitions, Dogecoin has lost its most valuable asset—his undivided attention.
The coin is not just bleeding. It is drowning. Investors are wary, markets are unstable, and the man who once made DOGE an unstoppable force is now its greatest weakness. The ultimate question remains whether Dogecoin can reclaim its former glory or remain a relic of Musk’s hype cycle.
One thing is certain: Dogecoin’s fate is no longer in its own hands. It lives and dies by Elon Musk’s shifting priorities.