Bitcoin Maintains a Price Above $38,000, While Nickel Surges to $101,000 in a Surprising Run

Tuesday’s cryptocurrency markets remained subdued, despite tremendous rise in certain other industries amid eastern Europe’s crisis.

Bitcoin and other major cryptocurrencies gained somewhat on Tuesday after the European Union (EU) announced plans to issue bonds to offset the negative effects of the Ukraine crisis and Russian sanctions.

The proposal to finance EU members might be ready next week, with proceeds targeted for energy and defence investment.

The news of the proposal boosted European equities. Germany’s DAX index increased by 0.7%, while the Stoxx Europe 600 index increased by 0.5%. S&P 500 futures began 0.38 percent higher, while silver futures extended their gains from yesterday, adding 2.68 percent.

Bitcoin remained above the $38K mark for a second day, but remained 13% behind the levels attained a week ago. Ether has lost 1.3 percent in the last 24 hours, while growth in other major cryptocurrencies has ranged from 3.1 percent on Binance Chain’s BNB to 1% on Terra’s LUNA. Avalanche’s AVAX and XRP both lost 1% at the same time period.

Brent crude surpassed $122 a barrel on Monday amid concerns that Russian sanctions might restrict oil imports. Russia is a major producer and has stated that it will cut off natural gas supplies to Germany if the country does not comply with other western states’ sanctions. According to the BBC, the EU imports approximately 40% of its gas and 30% of its oil from Russia.

The London Metal Exchange has halted nickel trade following reports that a suspected short squeeze pushed the metal’s price to a record $101,000 in early Asian hours.

“Those who bet against the metal’s appreciation have been compelled to buy at a considerably higher price, resulting in a short squeeze,” Susannah Streeter, an investment analyst at Hargreaves Lansdown. “It’s likely that the halt of trading was precipitated by a large margin call, with strong gains pushing speculators to scurry for additional funds to deposit in accounts to cover the gap.”

Nickel is a critical component of electric vehicle batteries, a sector that has developed in recent years alongside cryptocurrency.

Tuesday’s advances in cryptocurrency increased the total market capitalisation by 1.1 percent. The Bitcoin Dominance Index increased to 42.4 percent from 42.4 percent previously. The Dread and Greed Cryptocurrency Index – a sentiment indicator – fell two points to 21 in a single day and remains in a state of “severe fear,” implying that crypto prices may rise in the coming weeks.

Bitcoin, along with other risky assets, began the week with a fall on news of heightened tensions in Ukraine. However, Monday evening saw it recoup its losses.

According to data from analytics firm Santiment, major speculators piled into Tether’s USDT tokens during bitcoin’s weekend fall. Large USDT reserves may indicate that purchasers are preparing to purchase bitcoin, which may become undervalued following last week’s decline, FxPro analysts told.

However, not everyone believes in upward mobility.

 

“We are currently dealing with an extremely turbulent market as a result of the geopolitical situation in Europe,” James Wo, founder of crypto fund DFG, revealed in a Telegram chat. “We anticipate that markets will continue to exhibit quick and severe upside/downside fluctuations, akin to risk assets in traditional finance, until signs of a new status quo emerge.”

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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