Dogecoin Gains 7% as Bitcoin and XRP Experience Short-Lived Surge Amid Trade War Easing Hopes.

Dogecoin Soars 7% as Crypto Markets Rebound Amid Softer U.S. Tariff Outlook

Dogecoin (DOGE) jumped 7% on Tuesday, leading a broader crypto market recovery, as reports suggested that the upcoming U.S. tariffs, set for April 2, may be less aggressive than previously feared.

Sources indicate that President Donald Trump’s proposed “reciprocal tariffs” could be more targeted than initially expected, with some countries receiving exemptions and existing metal tariffs possibly remaining unchanged. Markets had been unsettled since February, when the initial tariff announcements triggered a sharp selloff, sending Bitcoin (BTC) down 17.6% from its January peak to below $80,000.

Federal Reserve Signals Support, Boosting Risk Assets

Adding to market optimism, the Federal Reserve recently raised its inflation outlook and lowered growth projections, likely in response to Trump’s trade stance. However, the Fed characterized the tariff-driven inflation as temporary and reaffirmed its plan to cut interest rates twice in 2025, providing a tailwind for risk assets like cryptocurrencies.

This shift in sentiment has pushed speculative assets higher, with DOGE, Pepecoin (PEPE), Mog (MOG), and Floki (FLOKI) all gaining over 5% in the past 24 hours. The memecoin sector as a whole has climbed 5.6%, according to CoinGecko data, outpacing Bitcoin’s 3% gain and the CoinDesk 20 (CD20) index’s 2.7% rise.

Memecoins tend to outperform in times of market optimism, as retail traders seek high-risk, high-reward plays, often chasing quick profits in lower-priced, speculative assets.

AI Tokens Hold Steady Despite Concerns Over Market Hype

Meanwhile, AI-related tokens remained relatively stable, even as Alibaba Chairman Joe Tsai warned that investment in the sector may be running ahead of actual demand.

“I start to see the beginning of some kind of bubble,” Tsai said at an HSBC conference in Hong Kong, pointing to speculative investments and large-scale data center construction as signs of potential overheating.

Despite these concerns, the AI token sector rose 4.5% in the past 24 hours, per CoinGecko data. NEAR Protocol, the largest AI-focused token by market cap, remained flat on the day but has gained 14% over the past week, following reports that Coinbase and top AI firms are working together on AI agent technology.

Additionally, Story Protocol’s IP token surged 8%, continuing its momentum as the project secures Hollywood and K-pop intellectual property deals. Story Protocol aims to help content creators monetize their IP for AI training, positioning itself as a bridge between entertainment and AI innovation.