Dogecoin (DOGE) and Cardano (ADA) were the biggest losers on Friday, with both cryptocurrencies experiencing sharp declines. Traders responded cautiously after mixed economic data and growing concerns about a possible recession fueled by the escalating dispute between President Donald Trump and tech entrepreneur Elon Musk.
DOGE dropped nearly 7% within 24 hours, while ADA fell by 6.5%. This reflected a broader risk-off mood among crypto investors.
Bitcoin Shows Slight Recovery, Other Major Coins Decline
Bitcoin (BTC) managed to rebound above $102,000 during early Asian trading hours, recovering slightly from its late Thursday dip near $101,000. Meanwhile, other leading cryptocurrencies, including Ethereum (ETH), Ripple’s XRP, Binance Coin (BNB), and Solana (SOL), declined between 2% and 5%.
Musk-Trump Feud Shakes Market Confidence
The public conflict between Musk and Trump has unsettled investors. Musk warned that the U.S. might enter a technical recession this year, heightening worries about the economy and hitting speculative assets like cryptocurrencies hard.
Jeff Mei, COO of BTSE, explained the situation in a Telegram message to CoinDesk:
“The spat between Elon Musk and President Trump exposed divisions that could slow down U.S. economic reforms. That is why cryptocurrencies dropped overnight.”
Despite this, Mei remains positive about the crypto market’s future. He pointed to the recent successful IPO of Circle as evidence that many institutional investors still believe in long-term growth.
Analysts Warn of Political Risks Spreading to Markets
Some experts see the political conflict as a key factor behind the market’s negative tone. Nick Ruck, director at LVRG Research, told CoinDesk:
“While recent U.S. economic reports contributed to the sell-off, the main cause was the escalating tensions between President Trump and Elon Musk.”
Ruck added that investors worry the feud could affect the broader market but stay hopeful about crypto’s future due to continued institutional interest.
Market Awaits Clarity on Debt Ceiling and Fiscal Policy
Traders remain cautious as they look for more clarity on the U.S. debt ceiling negotiations. The potential effects of Trump’s proposed “One Beautiful Bill” on fiscal policy also add to the uncertainty. Investors are watching closely for how these political and economic issues will influence the crypto market moving forward.
