Dogecoin surges 7% after Bitcoin and XRP briefly rally on trade war easing hopes
Shaurya Malwa, Sam Reynolds | Edited by Parikshit Mishra 25 Mar 2025 6:30 AM UTC
Dogecoin (DOGE) rose 7% as major cryptocurrencies advanced on Tuesday, fueled by speculation that upcoming U.S. tariffs scheduled for April 2 will be less stringent than initially thought.
The “reciprocal tariffs” that President Donald Trump is set to impose on April 2 may be more targeted than expected, exempting some countries from them and likely not increasing existing metal duties, according to reports.
Tariffs rocked markets in February, sending shockwaves through both stock and crypto markets, with Bitcoin (BTC) falling 17.6% to below $80,000 from its January peak.
Last week, the Federal Reserve raised its inflation forecasts and cut its growth forecasts, likely due to Trump’s trade strategy, but characterized tariff-induced inflation as temporary while maintaining plans for two rate cuts in 2025 that should support risk assets.
This, along with the possibility of softer tariffs, has increased optimism in the market, with memecoins at the forefront. DOGE, pepecoin (PEPE), mog (MOG), floki (FLOKI) and others have all increased by more than 5% in the last 24 hours, with the meme sector up 5.6% on average, according to CoinGecko.
That outpaced Bitcoin’s 3% gain, as well as Solana’s SOL and XRP, while the broader CoinDesk 20 Index (CD20) rose 2.7%.
Memcoins tend to jump or act as beta bets when Ether (ETH) or Bitcoin prices rise, as they are highly speculative assets with increased sensitivity to broader crypto market trends.
Retail traders often view the ease in major currencies as a signal of bullish sentiment in the crypto ecosystem, with traders looking to riskier, more rewarding opportunities like meme coins, which typically cost less and can provide quick profits in relatively short periods of time.
In other news, big names in artificial intelligence (AI) have steadied after Alibaba’s Joe Tsai said he saw signs of a bubble forming in the ecosystem. The sector has gained 4.5% in the past 24 hours, according to CoinGecko.
“I’m starting to see the beginning of some kind of bubble,” Tsai said at an HSBC conference in Hong Kong. “I’m starting to worry when people build
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