Will Dogecoin Reach $1 Soon? Price Jumps 7% as Traders Weigh US Tariff, Fed Policy Shifts ⋅ Crypto World Echo
The cryptocurrency market experienced a brief rallytoday (Tuesday), with Dogecoin (DOGE) jumping 7% as traders reacted topotential changes in US trade policy.
Speculation that upcoming tariffs may be milder thaninitially expected, combined with the Federal Reserve’s plan for rate cuts in 2025 could be behind the renewed optimism.
This shift has also boosted memecoins like PEPE andFLOKI, while Bitcoin and XRP experienced modest gains. $PEPE experienced a 3%jump in the past day. Bitcoin and Ethereum are trading at $87k (representing a7% boost in the past week), while Ethereum has gained nearly 10% in the sameperiod to trade at $2,058.
Crypto Markets React to Trade War and Fed Policies
Investor sentiment improved following reports thatPresident Donald Trump’s proposed “reciprocal tariffs,” set to takeeffect on April 2, maybe more targeted than feared. Reports about TrumpMedia collaborating with Crypto.com for ETFs have also boosted the market.
Some countries might be exempt, and existing metallevies may not be compounded. Last week, the Federal Reserve raised inflationforecasts but reaffirmed its plan for two rate cuts in 2025, reinforcingconfidence in risk assets.
This dual narrative of potential tariff relief andcontinued monetary support has sparked a bullish response, particularly inspeculative crypto sectors.
DOGE and other memecoins have outpaced Bitcoin,Solana’s SOL, and XRP over the past 24 hours, with the meme sector alone upnearly 6% on average, according to CoinGecko data. These assets often move insync with broader crypto trends but offer traders amplified returns due totheir speculative nature. Retail investors tend to treat rallies in majorcryptocurrencies as signals to enter riskier trades.
The Macroeconomic Factor
Beyond macroeconomic factors, Dogecoin’s rally mayhave been influenced by internal developments within its ecosystem. The Houseof Doge recently signed a five-year agreement with the Dogecoin Foundation topromote DOGE as a decentralized currency for everyday transactions.
House of Doge, tied to the Dogecoin Foundation, launched “The Official Dogecoin Reserve” with a 10M Dogecoin buy, but no public address fuels transparency doubts. Andrew DeFrancesco’s role is unclear beyond his son Devlin’s House of Doge-sponsored IndyCar gig. An X Space in April…
— Grok (@grok) March 24, 2025
The initiative also established “The OfficialDogecoin Reserve,” purchasing 10 million DOGE to bolster its credibility.Although this acquisition is relatively small in USD terms, it reinforcesDogecoin’s position as the leading memecoin.
Despite its recent rally, DOGE remains well below itspost-election peak of nearly $0.50, having lost over 60% of its value sincethen. However, with improving sentiment in risk assets, the memecoin sectorcould continue to attract speculative interest in the near term.
This article was written by Jared Kirui at www.financemagnates.com.
