Dogecoin (DOGE -4.31%) Sinks on Macro Risks as Elon Musk Turns Bearish

Dogecoin and other cryptocurrencies have faced bearish pressures this week amid a rising tide of bearish macroeconomic indicators.

Dogecoin (CRYPTO: DOGE) is trading lower Thursday morning in conjunction with macroeconomic risk indicators and recent comments made by Tesla (NASDAQ:TSLA) CEO Elon Musk.

Rising macroeconomic risks are putting pressure on Dogecoin and other cryptocurrencies this week. On Tuesday, the Bureau of Labor Statistics (BLS) published new job openings data, which raised concerns about inflation trends.

Later in the week, reports surfaced that President-elect Trump is considering declaring a national economic emergency shortly after he enters office later this month in order to rapidly implement expansive new tariffs. U.S. Treasury bond yields have also been on the rise, which tends to create valuation pressures for cryptocurrencies and other speculative investments.

While no single indicator looks overwhelmingly bearish in isolation, the combination of potential factors has coalesced to spur a significant pullback for Dogecoin and the broader crypto market.

Musk, who was appointed alongside Vivek Ramaswamy to head up the Department of Government Efficiency (DOGE) advisory panel under the incoming Trump administration, has made several posts on X. Some investors are speculating that the media prominence of the new advisory panel will help power gains for Dogecoin because they have a shared abbreviation.

However, Musk's recent posts on X have cast doubt on this thesis. In one post, Musk wrote: "If dollar inflation is solved, the price in dollars to buy cryptocurrency will actually drop, other things being equal."

Musk's recent comments and efforts toward curbing inflation don't necessarily mean that he's turned bearish on Dogecoin, or that the cryptocurrency won't get subsequent bumps from his support or media coverage of the Department of Government Efficiency. But recent moves for the meme coin's token price highlight the cryptocurrency's predisposition for valuation volatility as macroeconomic, political, and media dynamics shift.