Bitcoin Stagnates While Gold Extends Rally Ahead of Jobs Data
Bitcoin (BTC) continues to struggle with weak momentum, weighed down by sluggish on-chain activity and valuation concerns. In contrast, gold remains a standout performer, reaching new highs as investors seek safe-haven assets ahead of the upcoming U.S. nonfarm payrolls (NFP) report.
Bitcoin Faces Resistance Amid Declining Network Activity
Despite multiple attempts, BTC has been unable to sustain gains above $100,000, currently hovering near $98,000. Analysts at CryptoQuant estimate Bitcoin’s fair value falls between $48,000 and $95,000, suggesting the asset may be overpriced at its current levels.
Bitcoin’s Network Activity Index has dropped 15% from its November peak to 3,760, marking the lowest reading in over a year. Daily transactions have also plummeted by 53% since September, falling from 734,000 to 346,000, further dampening enthusiasm among investors.
The Trump administration’s delayed progress on establishing a Bitcoin strategic reserve has done little to boost confidence, while Eric Trump’s endorsement of BTC via World Liberty Financial has yet to translate into significant price action.
Gold Shines as Investors Seek Stability
Gold has surged more than 9% this year, hitting an all-time high of $2,882 per ounce, according to TradingView data. The metal has gained 2.32% this week alone and is on track for a sixth consecutive weekly gain.
UBS analysts note that gold’s strong performance underscores its growing appeal as a hedge against economic uncertainty, drawing capital away from Bitcoin and riskier assets.
All Eyes on Nonfarm Payrolls Report
Investors are awaiting Friday’s NFP report, which is expected to provide key insights into the U.S. labor market and shape Federal Reserve policy. Estimates tracked by FXStreet suggest job growth slowed to 170,000 in January from 256,000 in December, while the unemployment rate is projected to hold steady at 4.1%. Wage growth is expected to rise by 0.3% month-over-month.
A weaker-than-expected jobs report could increase speculation of earlier Fed rate cuts, potentially boosting risk assets like Bitcoin. Additionally, the Trump administration’s focus on lowering Treasury yields may provide further liquidity support.
However, stronger job data—combined with ongoing trade policy uncertainty—could complicate the Fed’s rate decisions, reinforcing gold’s dominance as a preferred hedge against volatility.
