Cryptocurrency markets experienced a rollercoaster ride over the past 24 hours, influenced by regulatory concerns and macroeconomic factors.
Bitcoin and Ethereum faced significant volatility, initially plummeting before rebounding to trade 15% higher than their Wednesday lows. This downturn was attributed to profit-taking from the previous week’s rally and a wave of leveraged bets on higher prices, with some traders noting technical downtrends. However, sentiment shifted following a dovish speech by U.S. Federal Reserve Chair Jerome Powell during the FOMC meeting, leading to a surge in major tokens, particularly those associated with layer-2 platforms and meme coins.
In the past 24 hours, Bitcoin and Ethereum rose by as much as 11%, leading gains across major tokens. Other cryptocurrencies such as Solana’s SOL, Cardano’s ADA, and BNB Chain’s BNB also saw increases of up to 8%, according to CoinGecko data. Additionally, tokens linked to layer-2 platforms experienced an average jump of 25%, while meme coins recorded a 16% increase.
The market downturn on Wednesday coincided with profit-taking and leveraged bets, causing an overall capitalization drop of over 15% in the past week. Some traders observed technical downtrends in Bitcoin, suggesting potential further losses. However, sentiment shifted later in the day after Jerome Powell’s FOMC speech took a dovish tone, with the central bank maintaining its outlook despite higher-than-expected inflation figures.
Singapore-based trading firm QCP Capital noted that buying was predominantly driven by spot transactions, indicating genuine demand rather than speculative trading. Dogecoin surged by 18% following news that Coinbase plans to offer futures trading for DOGE, Litecoin (LTC), and Bitcoin Cash (BCH) starting April 1. Some traders viewed this move as a precursor to a potential spot DOGE exchange-traded fund (ETF).
Coinbase emphasized that Dogecoin’s enduring popularity and active community support have elevated it beyond its origins as a meme token, positioning it as a significant player in the cryptocurrency market.