Dogecoin Surges 7% as Crypto Market Rebounds on Softer U.S. Tariff Expectations

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

According to sources, President Donald Trump’s planned “reciprocal tariffs” might be more selective, with exemptions for certain countries and no additional increases to existing metal tariffs. This news provided relief to markets, which had been rattled in February when the initial tariff announcement sent Bitcoin (BTC) plunging 17.6% from its January peak to below $80,000.

Market Sentiment Improves as Fed Stays Dovish

Last week, the Federal Reserve raised inflation expectations while lowering growth projections, likely in response to Trump’s trade policies. However, the Fed dismissed tariff-driven inflation as temporary and reaffirmed plans for two rate cuts in 2025, giving risk assets—including crypto—a boost.

This shift in sentiment has particularly benefited speculative assets, with DOGE, Pepecoin (PEPE), Mog (MOG), and Floki (FLOKI) each posting gains of more than 5% in the past 24 hours. The memecoin sector as a whole climbed 5.6%, per CoinGecko data, outperforming Bitcoin’s 3% rise and the CoinDesk 20 (CD20) index’s 2.7% increase.

Retail traders often turn to memecoins during bullish periods, as their low price and high volatility offer opportunities for quick, outsized gains.

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AI Tokens Show Stability Despite Market Hype Warnings

While memecoins surged, AI-related tokens remained stable, despite Alibaba Chairman Joe Tsai’s warning that AI investments may be running ahead of actual demand.

“I start to see the beginnings of some kind of bubble,” Tsai said during an HSBC conference in Hong Kong, citing speculative investments and large-scale data center expansion as signs of overheating.

Despite his concerns, AI tokens still gained 4.5% over 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% in the past week, following news that Coinbase and major AI firms are collaborating on AI agent technology.

Meanwhile, Story Protocol’s IP token climbed 8%, continuing its strong performance as it secures intellectual property deals with Hollywood studios and K-pop artists. Story Protocol positions itself as a platform that allows creators to license their content for AI training, bridging the gap between entertainment and artificial intelligence.