The cryptocurrency markets witnessed a tumultuous 24-hour period influenced by regulatory uncertainties and macroeconomic decisions.
Overnight, the crypto markets experienced significant volatility with bitcoin and ether initially declining before bouncing back to trade 15% higher than their lows on Wednesday.
The drop on Wednesday was attributed to profit-taking following last week’s rally and a wave of leveraged bets on higher prices, with some traders pointing to a technical downtrend.
Market sentiment shifted after U.S. Federal Reserve Chair Jerome Powell’s dovish FOMC speech, leading to a surge in BTC, ETH, and other major tokens, particularly layer-2 platforms and meme coins.
The inherent volatility of crypto markets was evident as bitcoin (BTC) and ether (ETH) fluctuated, ultimately rebounding to trade 15% above their Wednesday lows.
BTC and ETH recorded gains of up to 11% in the past 24 hours, leading the rally among major tokens. Other tokens like Solana’s SOL, Cardano’s ADA, and BNB Chain’s BNB also saw gains of up to 8%, according to data from CoinGecko. The CryptoX 20 Index, measuring the broader crypto market, was up by 7.62%.
Layer-2 platform tokens, based on Ethereum, experienced an average increase of 25% in the past day, as per CoinGecko data. Meme coins followed suit with a 16% surge.
On Wednesday, markets began to decline in early Asian trading due to profit-taking and leveraged bets, resulting in a 15% drop in overall market capitalization over the past week. Some traders speculated that bitcoin showed signs of a technical downtrend, indicating potential further losses.
Sentiment shifted later in the day after Jerome Powell’s FOMC speech, which maintained a dovish tone despite higher-than-expected inflation figures.
Singapore-based trading firm QCP Capital noted in a daily update that spot transactions were driving demand, rather than futures-led trading, suggesting genuine market demand.
Dogecoin (DOGE) saw an 18% jump following news of a Coinbase filing on March 7, indicating plans to offer DOGE, Litecoin (LTC), and Bitcoin cash (BCH) futures by April 1.
Some traders viewed this move as a potential precursor to a spot DOGE exchange-traded fund (ETF).
Coinbase, known for its stringent listing criteria and regulatory compliance, stated in the filing that DOGE had evolved beyond a mere “joke” token, highlighting its enduring popularity and strong community support.
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