Dogecoin Leads Crypto Surge With 6% Gain Amid Rate Cut Hopes

Dogecoin surged over 6% in the past 24 hours, leading gains among major cryptocurrencies. This rally was driven by renewed hopes for rate cuts and easing fears around looming U.S. tariffs. Bitcoin, the largest cryptocurrency by market capitalization, bounced toward the $110,000 mark, supported by the positive market sentiment.

The rally came after U.S. officials clarified that President Trump’s anticipated tariff hikes would not go into effect immediately, giving countries more time to negotiate. This clarification helped stabilize risk sentiment heading into a crucial week. Traders are now watching upcoming U.S. inflation data for signals that could support a dovish pivot from the Federal Reserve. A lower-than-expected CPI print could boost the case for a rate cut as early as September, helping crypto and risk assets extend their rebound.

Bitcoin gained 1.1% over 24 hours to trade above $109,000, while ether added 2.5% to reach $2,570. Other major cryptocurrencies, including Solana's SOL, XRP, Cardano's ADA, and Tron's TRX, posted 2%-4% gains, supported by strong inflows and improving sentiment. The bounce in Bitcoin and inflows into Ethereum indicate that traders are rotating into long-term value assets, seeking shelter in crypto as macro volatility builds.

Dogecoin’s outperformance marks a sharp return of retail enthusiasm, with trading volumes crossing $1.5 billion in the past 24 hours. This surge in interest was fueled by Elon Musk's unveiling of plans for an “America Party.”

According to one trader, if we see a soft CPI print on Tuesday, that could open the door for a Fed rate cut later this year. This optimism is driving the rally in cryptocurrencies, as investors anticipate a more accommodative monetary policy from the Federal Reserve. The market is closely watching the upcoming inflation data, as it could provide further clarity on the Fed's future actions.