- Cryptocurrencies linked to Donald Trump and Elon Musk have dropped in value in the last few hours
- Trump alone has lost the majority of its value gained in the last months in just a few hours as the market reacts to ongoing tariff disputes initiated by the US President
- Expert said the bearish market conditions have intensified the decline, making a recovery impossible
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Cryptocurrencies associated with former President Donald Trump and tech mogul Elon Musk, The TRUMP and Dogecoin have dropped in value.
The significant fall is a result of the ongoing tariff disputes initiated by the US President.
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Trump tariff tension
On Monday, February 11, Trump signed executive orders to impose 25% tariffs on steel and aluminium imports from March 12, ramping up a long-promised trade war despite warnings from Europe and China.
His words:
“Today I’m simplifying our tariffs on steel and aluminium. It’s 25% without exceptions or exemptions.”
Trump also issued a separate order for steel, which said it would apply to all imports from the same countries the aluminium tariffs hit, as well as to Brazil, Japan, and South Korea.
Trump meme coin plunges
On Monday, February 10, showed that TRUMP reached a new all-time low of $14.29, dropping 11% in 24 hours.
The decline raised concerns, as the currency's critical support level is $16.00.
However, in the early hours of Tuesday, at the time of writing, it had recovered to $16.50.
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Despite the recovery analysts believe the bearish market conditions make a full recovery impossible.
Leadership reports that traders were shifting their stance, now favouring short positions over long bets.
Also, funding rates for TRUMP have declined to their lowest levels since mid-January, signalling a surge in short contracts.
This shift indicated that traders were betting on further losses rather than a potential rebound.
With fewer investors for the long term and without a change in market conditions, this negative outlook is likely to persist, keeping TRUMP’s price under pressure.
Dogecoin loses value
Similarly, the last seven days have been rough for Dogecoin, the cryptocurrency backed by the world’s richest man and close ally of Trump, Elon Musk.
On January 17, Dogecoin’s market cap was above $60 billion. According to Forbes, that figure has dropped to $39.32 billion as of February 11.
At the time of writing, Dogecoin is priced at $0.25.
Also, Musk's net worth is now below $400 billion for the first time since Trump came into power.
Forbes reports that Musk lost $6.1 billion on Monday, bringing his net worth down to $391.3 billion.
Kanye shares how he was offered $2m to promote crypto fraud
Legit.ng earlier reported that American rapper and billionaire Kanye West, aka Ye, has caused an uproar across social media after sharing how he was offered a $2 million offer to promote a cryptocurrency scam.
The rapper recently made headlines for stopping traffic for his wife to have her photoshoot on the road, disclosed that the scam involved posting a fraudulent promotion and later claiming his account was hacked.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
