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Dogecoin Leads Crypto Rally as Bitcoin Nears $110K on Rate Cut Optimism and Tariff Delay
Dogecoin surged over 6% in the past 24 hours, leading gains across the crypto market as investors welcomed signs of easing U.S. trade tensions and growing expectations for a Federal Reserve interest rate cut later this year.
The memecoin was trading at $0.1698, marking a sharp resurgence in retail interest. Meanwhile, Bitcoin (BTC) climbed past $109,000, up 1.1% on the day, as optimism spread through markets following updates on the U.S. tariff timeline.
The gains came after U.S. officials confirmed that President Trump’s proposed tariff increases would not take effect immediately. Instead, countries now have additional time to reach new trade agreements, with the original July 9 deadline extended to August 1, according to Treasury Secretary Scott Bessent. This extension relieved fears of an abrupt global trade disruption.
“Markets are rallying after it was revealed countries will have more time to negotiate before tariffs take effect,” said Jeff Mei, COO at BTSE.
“If we see a soft CPI print on Tuesday, that could open the door for a Fed rate cut later this year,” Mei added via Telegram.
The dovish shift in sentiment stabilized risk appetite heading into a key macro week. Investors are now closely watching Wednesday’s U.S. Consumer Price Index (CPI) data for further clues. A weaker-than-expected inflation reading could increase pressure on the Fed to pivot toward easing, potentially delivering a rate cut as early as September.
That possibility has bolstered crypto markets and other risk assets.
Ethereum (ETH) jumped 2.5% to $2,570, while other major altcoins also rallied:
- Solana (SOL): $152.03 (+4%)
- XRP: $2.2901 (+3%)
- Cardano (ADA): $0.5826 (+2.5%)
- Tron (TRX): $0.2870 (+2.2%)
“The BTC bounce and ETH inflows show traders are rotating into long-term value assets,” said Eugene Cheung, Chief Commercial Officer at OSL.
“We’re optimistic that more investors will look to Bitcoin and Ethereum to escape macro volatility and potential inflation increases as the Fed signals high potential to cut interest rates this year.”
Retail Buzz Returns with Dogecoin
Dogecoin’s rally stands out, not only for its percentage gains but also for its surge in trading activity. Volume crossed $1.5 billion in 24 hours—a notable uptick, especially for a weekend session following a mostly flat week.
The spike in retail interest may have been further fueled by Elon Musk, a longtime Dogecoin supporter, who announced plans to launch an “America Party,” stirring speculation about future crypto advocacy or integration in his political ambitions.
