Bitcoin and other major cryptocurrencies showed muted gains on Tuesday as the European Union (EU) said it will issue bonds due to the ill effects of the war in Ukraine and sanctions imposed on Russia. By shauryamalwa
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Reports of the proposal pushed European equities higher. Germany’s DAX index rose 0.7% and the Stoxx Europe 600 index added 0.5%. S&P 500 futures opened 0.38% higher, while futures on silver continued yesterday’s run to add 2.68%. “Those that had bet against the metal’s rise in value have now been forced to buy at a much higher price, creating a short squeeze,” explained Susannah Streeter, an investment analyst at Hargreaves Lansdown, in an email to CoinDesk. “It’s likely a big margin call prompted the suspension of trading, with sharp gains forcing speculators to scramble for additional capital to put into accounts to cover the shortfall.
Tuesday’s gains in crypto added 1.1% to the total market capitalization. The Bitcoin Dominance Index rose to 42.4%. The Fear and Greed Cryptocurrency Index – a sentiment tracker – lost 2 points to 21 in a day and remains in a state of “extreme fear,” suggesting an increase in crypto prices could be expected in the coming weeks.