Musk's Politics Blunder Sends Dogecoin into Free Fall

Dogecoin plummeted over 5% in value after its highest-profile supporter, Elon Musk, admitted he had become too involved in politics. In an interview with The Economist, Musk stated 'I think I got too involved in politics' and 'Frankly, I got carried away.' These remarks sent shockwaves through the market, causing Dogecoin to drop from around $0.0723 to a low of $0.0685.

The Department of Government Efficiency, which shares the same acronym as Dogecoin (DOGE), was established by executive order in January 2025. Musk's role as its most visible figure ended in late May 2025, but his involvement had already begun to impact the market. His public moves, including interviews and social media posts, have historically influenced the price of Dogecoin.

Musk defended the agency's work during the interview but acknowledged that politics had consumed attention he should have devoted to his companies. He stated, 'I think instead of doing DOGE, I basically would have been working on my companies.' The connection between the federal agency and Dogecoin is purely superficial, with no formal ties beyond their shared acronym and Musk's association.