Dogecoin Rises by 7%: Bitcoin and XRP Benefit from Hopes of Easing the Trade War

The crypto market is showing signs of movement again: Dogecoin (DOGE) gained 7% on Tuesday, while Bitcoin (BTC) and XRP experienced a brief upswing. The reason? Optimism triggered by the prospect of lenient US tariffs and the Federal Reserve’s plans for two interest rate cuts in 2025.

Memecoins like DOGE, which are considered speculative assets, often react strongly to general market trends and offer investors opportunities for high returns with corresponding risk. At the same time, AI tokens remain stable, despite a prominent tech supporter warning against excessive investment.

Besides Dogecoin, other memecoins are also in focus

The rally in Dogecoin price was fueled by reports of President Donald Trump’s planned “reciprocal tariffs,” set to take effect on April 2nd. These may be more targeted than feared, with exemptions for some countries and no additional metal duties.

After the tariffs rocked markets in February—Bitcoin fell 17.6% from its January high to below $80,000—the prospect of a relaxation appears to be lifting sentiment. The Federal Reserve also raised inflation forecasts and lowered growth projections, but is sticking with two interest rate cuts in 2025, supporting risky assets like cryptocurrencies.

Memecoins such as Dogecoin (DOGE), Pepecoin (PEPE), Mog (MOG), and Floki (FLOKI) have seen gains of over 5% in the past 24 hours, with the sector averaging 5.6%, according to CoinGecko. This outperformed the 3% gains of Bitcoin, Solana (SOL), and XRP.

The broad CoinDesk 20 (CD20) index rose 2.7%. Memecoins often act as “beta bets” because they are sensitive to movements in Ether (ETH) or Bitcoin. For retail investors, the recovery of major coins signals bullish sentiment, driving them toward riskier but potentially lucrative options like memecoins.

AI token stable despite bubble concerns

Meanwhile, AI tokens remain robust. Alibaba’s Joe Tsai warned of a potential bubble at an HSBC conference in Hong Kong: “I worry about data centers being built speculatively.” He sees investments outpacing demand.

Nevertheless, the category rose 4.5% in the last 24 hours. NEAR Protocol, the largest AI token by market capitalization, is stable today but up 14% for the week – driven by collaborations between Coinbase and AI giants on agent technologies. Story’s IP token gained 8%, boosted by deals with Hollywood and K-pop stars licensing their content for AI training.

The market shows: Memecoins benefit from short-term optimism, while AI tokens retain long-term potential – despite bubble discussions.

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(Featured image by Rudolfs Klinstons via Pexels)

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