Dogecoin Surges 7% as Market Eyes Milder Tariffs and Fed Rate Cuts

Dogecoin (DOGE) jumped 7% Tuesday as crypto markets rebounded, driven by optimism over potentially softer U.S. tariffs set for April 2. Reports suggest President Donald Trump’s proposed "reciprocal tariffs" may be more selective than initially expected, with some countries likely exempt and existing metal levies possibly not stacking, easing investor concerns.

Markets were rattled in February when Trump’s tariff threats first emerged, sending bitcoin (BTC) plunging 17.6% to under $80,000 from its January highs. However, recent developments have sparked a relief rally. Last week, the Federal Reserve raised inflation projections but maintained its plan for two rate cuts in 2025, viewing the inflationary impact of tariffs as temporary. This has helped lift risk assets across the board.

Meme coins have led the rally, with DOGE, PEPE, FLOKI, and MOG gaining over 5% in the past 24 hours, outpacing bitcoin and Solana’s SOL, which rose around 3%. The CoinDesk 20 index climbed 2.7%, while the memecoin sector surged 5.6% on average, according to CoinGecko.

Retail investors often flock to meme coins when major cryptos rise, seeking high-risk, high-reward plays. Their low price points and volatility make them attractive during bullish sentiment shifts.

Meanwhile, AI-related tokens remained steady despite recent bubble warnings. Alibaba’s Joe Tsai expressed concerns over speculative investments in the AI space at an HSBC event, noting overbuilding in data centers and excessive fund activity. Still, AI tokens rose 4.5% on average.

NEAR Protocol, the top AI token by market cap, held flat but remains up 14% for the week. Story’s IP token surged 8% amid continued traction with Hollywood and K-pop intellectual property, positioning itself as a bridge between creative rights and AI training.

Crypto markets remain sensitive to macro signals, with memecoins and AI tokens at the center of recent momentum.