Billionaire Elon Musk is well-known for his association with meme coin Dogecoin (DOGE). In 2019, he revealed that it was his favorite cryptocurrency.

Over the years, multiple Musk tweets and actions led to powerful DOGE rallies, with the biggest one - that led to the $0.7316 all-time high (ATH) - coming near the day he was the host of Saturday Night Live (SNL).

Dogecoin might be my fav cryptocurrency. It’s pretty cool.

Dogecoin likewise reacted positively to Donald Trump's re-election as the cycle was closely linked with Elon Musk, given his endorsement of the Republican, and his role in the new administration.

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Between November 5 and December 19 - the final day before a major correction - DOGE rallied 174.12% from $0.17 to $0.47. Furthermore, the price action ensured that the number of Dogecoin millionaires soared by 40% by November 7.

DOGE records massive losses in 2025

The second Trump presidency has not been nearly as bullish for Dogecoin, as well as most cryptocurrencies and stocks, as his second election victory.

Since January 20 - inauguration day - DOGE has dropped 51.43% from $0.35 to $0.17. Numerous assets have experienced a similar phenomenon, leading to speculation that the U.S. may, in fact, already be in a recession.

While most of the turbulence has been linked to the fallout of Trump's tariff program and often inflammatory rhetoric, Dogecoin's violent reaction may be more closely related to Elon Musk.

Is Musk to blame for Dogecoin’s collapse?

Specifically, with the Republican's re-entry into the White House, the South African-Canadian-American billionaire became the head of the Department of Government Efficiency - D.O.G.E or, plainly, DOGE, depending on the formatting.

Though many Americans believe the Department's mission - reducing government expenditures to contain the ballooning national debt - is not only positive but necessary, execution has been more controversial.

D.O.G.E. has, so far, made multiple errors when firing federal employees, with the quick axing and rehiring of hundreds of nuclear engineers - critical for America's nuclear arsenal - becoming a stark example.

The Department's operations have also been marred by privacy and security concerns. At the same time, multiple outlets claim that it is heavily and continuously misrepresenting the savings it achieved by vastly inflating numbers.

Though none of this activity is linked to Dogecoin, another asset closely linked with Musk - albeit more directly than the meme coin - has been suffering from blowback: Tesla (NASDAQ:TSLA).

As a result of Musk's actions and statements, Tesla's cars have become targets of vandalism and boycotts, and TSLA shares have collapsed 41.52% since January 20 to their March 14 price of $249.42.

It is likely that a similar phenomenon has contributed to Dogecoin's price collapse.