Dogecoin Climbs 7% While Bitcoin and XRP Rally Briefly on Speculation of Trade Tensions Cooling.

Dogecoin Spikes 7% as Crypto Market Recovers on Softer U.S. Tariff Outlook

Dogecoin (DOGE) surged 7% on Tuesday, leading a broad-based crypto market rebound, as reports indicated that the upcoming U.S. tariffs, set for April 2, may be less aggressive than initially expected.

Sources suggest that President Donald Trump’s proposed “reciprocal tariffs” could be more selectively applied, with some nations receiving exemptions and existing metal tariffs remaining unchanged. The initial tariff announcement in February triggered a sharp selloff across financial markets, with Bitcoin (BTC) plunging 17.6% from its January peak, briefly falling below $80,000.

Federal Reserve Signals Stability, Lifting Risk Assets

Adding to the positive sentiment, the Federal Reserve recently adjusted its economic outlook, increasing inflation projections while lowering growth forecasts, likely in response to Trump’s trade policies. Despite these adjustments, the Fed described the tariff-driven inflation as temporary and reaffirmed its plan for two rate cuts in 2025, helping risk assets—including cryptocurrencies—rebound.

This shift has fueled a rally in speculative assets, with DOGE, Pepecoin (PEPE), Mog (MOG), and Floki (FLOKI) all posting gains of over 5% in the past 24 hours. The broader memecoin sector is up 5.6%, outperforming Bitcoin’s 3% rise and the CoinDesk 20 (CD20) index’s 2.7% increase, per CoinGecko data.

Memecoins often experience high volatility and amplified price swings, as retail traders take advantage of bullish market sentiment to chase high-risk, high-reward plays.

AI Tokens Hold Steady Amid Concerns of Overheating Market

While memecoins surged, AI-focused tokens remained relatively stable, even as Alibaba Chairman Joe Tsai expressed concerns that the AI investment boom may be outpacing actual demand.

“I start to see the beginnings of some kind of bubble,” Tsai warned at an HSBC conference in Hong Kong, pointing to speculative investment and rapid data center expansion as signs of excessive market optimism.

Despite these concerns, AI tokens gained 4.5% in the past 24 hours, according to CoinGecko. NEAR Protocol, the largest AI-related token by market cap, was flat on the day but has rallied 14% over the past week, following reports that Coinbase and leading AI firms are working together on AI-driven agent technology.

Additionally, Story Protocol’s IP token climbed 8%, continuing its upward trend as it secures new intellectual property partnerships with Hollywood studios and K-pop artists. Story Protocol aims to provide a blockchain-based framework for rights holders to license their content for AI training, positioning itself as a key player in the evolving relationship between AI and entertainment.

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