Due to bullish sentiment in DOGE futures, Dogecoin has surged by 18%; Bitcoin is approaching $68,000. What will be the next move in the market?

In the tumultuous world of cryptocurrency markets, Dogecoin (DOGE) surged by 18%, buoyed by hopes of DOGE futures. Concurrently, Bitcoin (BTC) edged closer to the $68,000 mark, showcasing the characteristic volatility of the sector.

BTC and ETH experienced fluctuations, initially plummeting before rebounding to trade up to 15% higher than their Wednesday lows. Over the past 24 hours, both BTC and ETH witnessed gains of up to 11%, leading the charge among major tokens. Notably, Solana's SOL, Cardano's ADA, and BNB Chain's BNB also surged, adding up to 8%, according to data from CoinGecko. The CoinDesk 20 Index, reflective of the broader crypto market, saw a recent uptick of 7.62%.

Layer-2 Platform Tokens and Meme Coins Lead Sectoral Gains: CoinGecko Data Shows 25% and 16% Surge Respectively

Layer-2 platform tokens, alongside meme coins, took the lead in sectoral gains, with an average surge of 25% and 16%, respectively, within the past day, as per CoinGecko data.

Market activity on Wednesday saw an early decline in Asian hours due to profit-taking from the previous week's rally and a wave of leveraged bets on higher prices. This led to an overall capitalization drop of over 15% in the past week, with some traders identifying signs of a technical downtrend in Bitcoin, indicating potential further losses.

However, sentiment shifted later in the day following U.S. Federal Reserve Chair Jerome Powell's dovish tone during the FOMC speech. Despite higher-than-expected inflation figures, the central bank maintained its outlook for three rate cuts this year.

Singapore-based trading firm QCP Capital observed that the surge in buying was primarily driven by spot transactions, considered a better reflection of demand compared to futures-led trading, which tends to be more speculative.

Dogecoin Optimism Rises with Coinbase's Future Plans and ETF Speculation

The optimism surrounding Dogecoin surged after a viral March 7 filing from prominent crypto exchange Coinbase hinted at plans to offer DOGE, litecoin (LTC), and bitcoin cash (BCH) futures as early as April 1. Some traders speculated this move could pave the way for a spot DOGE exchange-traded fund (ETF).

Coinbase, known for its stringent listing criteria and regulatory compliance, stated in the filing that DOGE transcended its origins as a "joke" token in the current investment landscape.