Ethereum has risen above $4,000 for the first time in six months with bitcoin breaking all time high to rise above $66,000.
Bitcoin jumped by about 4.8% on the opening of the stock market, while the Bitcoin ETF rose by 8.39% to $43.35 from $40.39 at some point yesterday.
That gives it a premium of close to 4%, more than the 2.7% premium it saw yesterday as the ETF’s volumes reached the second highest of any ETF launch ever.
Demand for the ETF thus is seemingly contributing to bitcoin’s spot rise with its price currently standing $1,000 above its previous all time high.
There’s now no anchor for bitcoin support or resistance except indirectly through eth until that too passes its all time high, at which point the two biggest cryptos would be free floating.
Another potential contributor to the price gain might be the rise of the metaverse with Barry Silbert stating in response to suggestions of a potential Facebook metaverse dystopia that “Decentraland fixes this.”
Facebook is trying to rebrand to focus more on virtual worlds as it pilots Novi, a crypto wallet that for now facilitates only the Paxos stablecoin USDP.
That’s already attracted some criticism by some Senators, but as Facebook is using someone else’s tokenized dollar instead of creating its own synthetic of sorts that combines different fiat reserves, there might be less pushback.
For crypto, that might allow for more users to be onboarded, some 2 billion, but for now the Novi pilot is limited to USA.
China’s property troubles also continue to increase demand for bitcoin as a hedge which often rises during Shanghai mornings.
Sinic Holdings Group Co. is the latest to default with an official default deadline looming for Evergrande this Saturday 23rd.
What the reaction of the market will be to this expected official default is unclear especially as it discriminates against foreign holders with Chinese Evergrande bonds paid.
That uncertainty is increasing bitcoin’s attraction as a diversifier with the latest loophole in China apparently being to form a company to buy bitcoin,
This all seems to have contributed to a change in sentiment in addition to the $30,000 bottom holding more than twice. Thus bitcoin now moves at previously unseen price levels.