“If we see a soft CPI print on Tuesday, that could open the door for a Fed rate cut later this year,” one trader said.

Dogecoin DOGE $0.1709 surged over 6% in the past 24 hours to lead gains among major cryptocurrencies, as bitcoin BTC $108 799,41 bounced toward the $110,000 mark on renewed rate-cut hopes and easing fears around looming U.S. tariffs.

The rally came after U.S. officials clarified that President Trump’s long-anticipated tariff hikes would not go into effect immediately, giving countries more time to negotiate.

The initial July 9 deadline sparked concerns over a sharp deterioration in global trade, but Treasury Secretary Scott Bessent said on Sunday that nations without a deal would likely receive a three-week extension to reach agreements before the new levies take effect on August 1.

“Markets are rallying after it was revealed countries will have more time to negotiate before tariffs take effect,” said Jeff Mei, COO at BTSE, in a Telegram message. “If we see a soft CPI print on Tuesday, that could open the door for a Fed rate cut later this year.”

The clarification helped stabilize risk sentiment heading into a crucial week. Traders are now watching Wednesday’s 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.