Coinspeaker
Bitcoin vs Gold: What Will Dominate as US Jobs Data Looms
Bitcoin price
BTC
$96 679
24h volatility:
0.7%
Market cap:
$1.92 T
Vol. 24h:
$55.92 B
continues to remain under selling pressure, slipping under $97,000 ahead of the US jobs data release on Friday. The trader enthusiasm seems to be fading away amid the current macroeconomic conditions as US dollar liquidity dries up and the Federal Reserve continues to hold interest rates higher. On the other hand, the gold price continues to inch higher to new highs of $2.840 amid strong global demand for the yellow metal.
Bitcoin Network Activity and Fair Price Estimate
As per blockchain analytics firm CryptoQuant, the Bitcoin Network activity has witnessed a staggering 15% drop from the high of 3,760 points in November 2024 to now hitting a one-year low. Furthermore, the daily transactions on the BTC network have tanked by a massive 53% from an all-time high of 734,000 in September to currently at 346,000.
Furthermore, the blockchain analytics noted that the fair value for Bitcoin price is anywhere between $48,000 and $95,000, suggesting that BTC looks overvalued at the current price of $98,000. Since recovering from the drop early Monday, BTC has had difficulty maintaining momentum above the $100,000 mark. furthermore, the market sentiment has nosedived as optimism surrounding Donald Trump’s strategic Bitcoin reserve announcement fades.
On the other hand, inflows into spot Bitcoin ETFs have also slowed down recently amid market uncertainty. On Thursday, the net flows remained negative, with $140 million in total outflows. Fidelity‘s FBTC saw over $100 million in outflows, while Grayscale‘s GBTC saw more than $42 million in outflows. BlackRock Bitcoin ETF (IBIT) clocked zero inflows yesterday suggesting waning market sentiment.
Gold Price Continues to Drive Higher Gains
Yellow metal gold has been receiving significant attention recently soaring more than 9% year-to-date to hit a record high of $2,882 per ounce, according to TradingView data. Over the past week, it has gained 2.32%, and is on track for the sixth consecutive week of inflows.
UBS highlights that gold’s upward movement reflects its “lasting appeal as a store of value and hedge against uncertainty,” attracting investors away from Bitcoin’s lackluster performance.
Analyst Mary noted that market sentiment today is being influenced by economic data, with gold (XAUUSD) holding steady within the 2844-2858 zone. The precious metal continues to consolidate above its previous resistance level, with buyers maintaining control and keeping the bullish trend intact. As long as the price remains above 2858, the next target is 2915, in line with the rising channel.
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Source: Mary
US Jobs Data to Play a Decisive Role
The highly anticipated nonfarm payrolls (NFP) report, set for release on Friday, will provide insights into the state of the job market for January. Estimates from FXStreet suggest a slowdown in job additions to 170,000, down from December’s 256,000. The unemployment rate is likely to remain unchanged at 4.1%, while average hourly earnings are expected to rise by 0.3% month-on-month, in line with December’s growth.
