Bitcoin Stuck in Neutral, Gold Rallies for Sixth Straight Week with Jobs Report on Horizon

Bitcoin Slumps as Gold Extends Winning Streak Ahead of Jobs Report

Bitcoin (BTC) remains in a holding pattern, struggling to break past key resistance levels, while gold continues its impressive rally ahead of the crucial U.S. nonfarm payrolls (NFP) report, which could influence Federal Reserve policy and market sentiment.

Bitcoin’s Momentum Stalls Amid Weak Network Activity

Despite briefly reclaiming $100,000 earlier this week, Bitcoin has failed to sustain upward momentum, hovering around $98,000. Analysts at CryptoQuant suggest BTC may be overpriced, estimating its fair value between $48,000 and $95,000.

On-chain metrics highlight weakening network activity, with Bitcoin’s Network Activity Index dropping 15% from its November peak to its lowest level in over a year at 3,760 points. Daily transactions have also plunged by 53%, falling from a September high of 734,000 to just 346,000.

Further dampening sentiment is the slow progress of the Trump administration’s proposed Bitcoin strategic reserve. While Eric Trump recently promoted BTC through World Liberty Financial, the move failed to ignite a rally.

Gold Continues to Outshine Bitcoin

Meanwhile, gold has surged over 9% this year, setting a new record at $2,882 per ounce, per TradingView data. The precious metal is on track for its sixth consecutive weekly gain, with a 2.32% rise in just the past week.

UBS analysts point to increasing investor preference for gold as a hedge against economic uncertainty, particularly as Bitcoin struggles to maintain bullish momentum.

Investors Brace for U.S. Jobs Report Impact

All eyes are now on Friday’s NFP report, which will provide insights into the strength of the labor market. Analysts expect job gains to slow to 170,000 from December’s 256,000, with the unemployment rate steady at 4.1% and wage growth projected at 0.3% month-over-month.

A weaker-than-expected jobs report could fuel expectations for Federal Reserve rate cuts, potentially boosting risk assets like Bitcoin and equities. Additionally, falling Treasury yields—an area of focus for the Trump administration—could further support market liquidity.

However, if job data comes in stronger than expected, it could complicate the Fed’s monetary policy outlook, leading to risk aversion and reinforcing gold’s appeal as a safe-haven asset.

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