Dogecoin Jumps 7% as Crypto Market Rebounds on Softer U.S. Tariff Expectations
Dogecoin (DOGE) surged 7% on Tuesday, outpacing major cryptocurrencies, as reports suggested that the upcoming U.S. tariffs set for April 2 may be less severe than originally feared.
Sources indicate that President Donald Trump’s “reciprocal tariffs” could be more targeted, with some countries receiving exemptions and existing metal tariffs potentially staying unchanged. The initial tariff announcement in February sent shockwaves through financial markets, causing Bitcoin (BTC) to drop 17.6% from its January peak, briefly falling below $80,000.
Fed Policy and Trade Uncertainty Drive Market Sentiment
Last week, the Federal Reserve adjusted its economic outlook, increasing inflation projections while lowering growth forecasts, likely in response to Trump’s trade policies. Despite these concerns, the Fed maintained plans for two interest rate cuts in 2025, reassuring investors and fueling a recovery in risk assets, including crypto.
This renewed optimism has benefited speculative assets, with DOGE, Pepecoin (PEPE), Mog (MOG), and Floki (FLOKI) all gaining over 5% in the past 24 hours. The memecoin sector as a whole rose 5.6%, per CoinGecko data, outperforming Bitcoin’s 3% increase and the CoinDesk 20 (CD20) index’s 2.7% climb.
Memecoins tend to rally during broader market recoveries, as retail traders seek out high-volatility, high-reward opportunities, often piling into lower-priced assets that can deliver quick, outsized gains.
AI Tokens Hold Ground Amid Speculation of Market Overheating
While memecoins saw sharp gains, AI-focused tokens remained steady, even as Alibaba Chairman Joe Tsai cautioned that investment in the sector may be outpacing real-world demand.
“I start to see the beginnings of some kind of bubble,” Tsai said at an HSBC conference in Hong Kong, pointing to large speculative investments and aggressive data center expansion as signs of potential overheating in the AI sector.
Despite this warning, AI tokens still posted a 4.5% gain over the past 24 hours, per CoinGecko. NEAR Protocol, the largest AI-related token by market cap, remained flat on the day but has surged 14% over the past week, buoyed by news that Coinbase and major AI firms are collaborating on AI agent technology.
Meanwhile, Story Protocol’s IP token climbed 8%, continuing its strong momentum as it secures new partnerships with Hollywood and K-pop industry players. Story Protocol positions itself as a blockchain-powered solution for licensing creative works for AI training, offering rights holders a structured way to monetize their content in the age of artificial intelligence.
