In a stunning turn of events, President Donald Trump made headlines on June 5, 2025, with a sharp critique of Elon Musk, stating that 'the easiest way to save money is to terminate Elon's governmental subsidies and contracts.' According to a widely circulated post by The Kobeissi Letter on social media, Trump also remarked that Musk was 'wearing thin' and claimed he 'asked him to leave,' even going as far as saying Musk 'went crazy.' This statement, timestamped at approximately 2:30 PM EST on June 5, 2025, as per the social media post, sent shockwaves through both the stock and cryptocurrency markets. Elon Musk, as the CEO of Tesla and SpaceX, has long been a polarizing figure whose companies rely on significant government contracts and subsidies. Tesla shares (TSLA) plummeted by 8.2% within hours of the statement, dropping from $420.50 to $386.00 by 4:00 PM EST on the same day, as reported by major financial outlets. This sudden decline in Tesla’s stock price has direct implications for crypto markets, particularly for tokens associated with Musk’s influence like Dogecoin (DOGE), which saw a rapid 5.7% drop from $0.142 to $0.134 between 2:30 PM and 5:00 PM EST on June 5, 2025, based on data from leading crypto exchanges. The broader stock market also felt the ripple effects, with the NASDAQ Composite Index dipping by 1.3% to 18,450 points by the close of trading at 4:00 PM EST, reflecting a risk-off sentiment among investors. This event underscores the interconnectedness of traditional markets and cryptocurrencies, especially when high-profile figures like Musk are involved, creating volatility that traders must navigate carefully.

From a crypto trading perspective, Trump’s remarks open up both risks and opportunities. Dogecoin (DOGE), often tied to Musk’s public statements and social media activity, experienced a trading volume surge of 42% within three hours of the news, reaching 1.2 billion DOGE traded between 2:30 PM and 5:30 PM EST on June 5, 2025, as per data from CoinGecko. This spike in volume indicates panic selling but also potential for short-term recovery if sentiment shifts. Meanwhile, Bitcoin (BTC) and Ethereum (ETH), often seen as safe havens during altcoin volatility, showed relative stability, with BTC declining only 0.8% from $69,800 to $69,250 and ETH dropping 1.1% from $3,850 to $3,807 during the same timeframe. For traders, this could signal an opportunity to hedge positions by moving into BTC or ETH while monitoring DOGE for a potential rebound. Additionally, Musk’s involvement with AI through xAI could impact AI-related tokens like Render Token (RNDR), which fell 3.4% from $10.20 to $9.85 between 3:00 PM and 6:00 PM EST on June 5, 2025. The correlation between Musk’s business ventures and crypto assets tied to his influence creates a unique trading landscape where stock market news directly affects digital asset prices. Institutional investors, who often bridge stock and crypto markets, may also reassess their exposure to Musk-linked assets, potentially driving further volatility.

Diving into technical indicators, Dogecoin’s Relative Strength Index (RSI) dropped to 38 on the 1-hour chart by 5:00 PM EST on June 5, 2025, signaling oversold conditions that could attract bargain hunters. Trading volume for DOGE/USD and DOGE/BTC pairs on major exchanges like Binance spiked, with DOGE/USD seeing $320 million in trades between 3:00 PM and 6:00 PM EST, a 50% increase from the prior three-hour period. Bitcoin’s on-chain metrics, meanwhile, showed a slight uptick in whale activity, with 12,500 BTC moved to exchanges between 4:00 PM and 7:00 PM EST, suggesting some profit-taking amid the uncertainty, as reported by Whale Alert. In the stock-crypto correlation, Tesla’s sharp decline aligns with a broader risk-off mood, with the S&P 500 Volatility Index (VIX) rising 9% to 22.5 by 4:00 PM EST on June 5, 2025, indicating heightened market fear. This environment often pushes capital out of speculative assets like altcoins and into safer bets like Bitcoin or stablecoins. For crypto-related stocks, companies like MicroStrategy (MSTR), which holds significant Bitcoin reserves, saw a modest 2.1% decline from $1,650 to $1,615 during the same trading window, reflecting indirect pressure from the Musk news.

The institutional impact cannot be overlooked. With Tesla’s reliance on government contracts under scrutiny, institutional money flow between stocks and crypto may shift. Hedge funds and asset managers with exposure to both TSLA and crypto assets like DOGE or BTC may rebalance portfolios, potentially driving selling pressure on Musk-linked tokens in the short term. However, this could also spur interest in uncorrelated crypto assets, as investors seek to diversify away from Musk-centric volatility. The correlation between Tesla’s stock performance and Dogecoin’s price movements remains strong, with historical data showing a 0.75 correlation coefficient over the past year, per market analysis tools. Traders should watch for further statements from Trump or Musk in the coming days, as any escalation could amplify cross-market effects. As of 7:00 PM EST on June 5, 2025, the situation remains fluid, with crypto markets poised for heightened volatility tied to stock market sentiment.