Cryptocurrencies: bitcoin follows the rise of the tech sector and rises this week

Bitcoin rose this Friday, 2nd, accumulating robust gains in the week and following the rise seen in New York stock indices, also reacting to more robust than expected employment data from the United States.

At 5:30 pm (Brasília time), bitcoin rose 0.03%, to US$42,817.79, according to Binance. Ethereum, in turn, fell 0.38%, to US$ 2,294.41. During the week, bitcoin rose 1.93%, and ethereum rose 1.71%.

Cryptocurrencies rose this week following the Dow Jones and the S&P 500 in the stock market, as risk sentiment improved around the world. Investors are optimistic following strong quarterly results from technology companies.

This week, the world's most traded cryptocurrency also received a boost after Ark Investment Management, the group run by technology expert Cathie Wood, said that an ideal investment portfolio would have around 19.4% of its resources allocated to bitcoin.

Noelle Acheson writes in her Crypto is Macro newsletter that bitcoin has an interesting duality that could manifest itself as investors seek safety following concerns about the regional banking sector in the US. She states that, in certain situations, bitcoin behaves like a macroeconomic asset, however, on other days, it acts as a security asset. At the moment, both scenarios seem to favor the asset.

Meanwhile, Bitcoin Market analyst André Franco states that today the cryptocurrency has moved sideways, and that market volatility is compressed, a characteristic that precedes “a big movement”.

*With information from Dow Jones