Bitcoin (BTC) fails to gain trader enthusiasm amid chatter about price overvaluation, ahead of the release of a US employment report that will affect GORD's rate plans While still strong, it continues to gain trader enthusiasm.
A recent analysis from Cryptoquant shows that Bitcoin's fair value is between $48,000 and $95,000, highlighting that its current market price appears to be slightly above $98,000.
Analytics Firm's Bitcoin network activity index plummeted 15% to 3,760 points from its peak in November. This is the lowest level in over a year. The recession is driven by a staggering 53% decline in daily trading, which fell from a history-high 734,000 in September to 346,000.
Since recovering from the slide early on Monday, BTC has struggled to gain more than $100,000 in traction. Market sentiment may have been suppressed, primarily because the Trump administration's slow progress was made in establishing proposed BTC strategy preparations.
Interestingly, Eric Trump recently encouraged investment in BTC through family-related global Liberty Financial, but this support failed to catalyze a critical upward movement.
In contrast, gold has gained all of its love, and has surged over 9% per year to reach a record high of $2,882 per ounce per TradingView data. Yellow metal has been on track for six consecutive week, up 2.32% this week alone. UBS notes that the rise of gold is “the lasting appeal as a valuable storage and a hedge against uncertainty,” and that it separates investors from Bitcoin's slimy performance .
Focus on non-farm salaries
On Friday, the expected non-farm payroll (NFP) report shed light on employment status in January, with estimates tracked by FXSTREET suggesting a slowdown in jobs from 256,000 in December to 170,000. The unemployment rate is expected to remain stable at 4.1%, with average hourly profit margin expected to rise by 0.3% per month, along with December's pace.
If expectations are missed a lot, traders could rethink the fast potential for Fed rate reductions, potentially lowering the Treasury yields for the decade. It could drive demand for risky assets such as stocks and Bitcoin. Furthermore, given the Trump administration's focus on lowering the same, 10-year yields could drop sharply.
Conversely, strong data against the backdrop of tariff threats can only complicate the problem for the Fed and lead to risk aversion.
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