Volatility gripped the crypto markets as bitcoin and ether initially declined before rebounding to trade significantly higher than Wednesday's lows. Profit-taking from the previous week's rally and leveraged betting on upward price movements contributed to Wednesday's decline, with some traders noting technical downtrends.

However, sentiment shifted after U.S. Federal Reserve Chair Jerome Powell struck a dovish tone in his FOMC speech, leading to a surge in BTC, ETH, and other major tokens, especially layer-2 platforms and meme coins.

BTC and ETH recorded gains of up to 11% in the past 24 hours, with SOL, ADA, and BNB also surging. Layer-2 tokens saw an average increase of 25%, followed by meme coins with a 16% jump.

The bullish sentiment was further fueled by a viral filing from Coinbase, indicating plans to introduce DOGE, LTC, and BCH futures by April 1. Traders speculated that this move could pave the way for a spot DOGE exchange-traded fund (ETF), considering Coinbase's reputation for stringent listing criteria and regulatory compliance.

As crypto markets navigate regulatory uncertainties and macroeconomic factors, spot-driven demand remains robust, signaling potential for further market growth and innovation.