Bitcoin Falters While Gold Nears Six-Week Winning Streak as Market Awaits Jobs Data

Bitcoin Struggles as Gold Extends Winning Streak Before Key Jobs Data

Bitcoin (BTC) remains under pressure, failing to gain bullish momentum as weak on-chain activity and valuation concerns weigh on the market. Meanwhile, gold continues its upward trajectory, positioning itself as the preferred store of value ahead of the highly anticipated U.S. nonfarm payrolls (NFP) report.

Bitcoin Faces Headwinds Amid Sluggish Network Activity

BTC has struggled to maintain its footing above $100,000, currently trading near $98,000. Analysts at CryptoQuant suggest Bitcoin may be overpriced, estimating its fair value in the range of $48,000 to $95,000.

On-chain data also signals declining network engagement, with Bitcoin’s Network Activity Index dropping 15% since November, reaching a yearly low of 3,760 points. Daily transactions have plunged 53% from a record 734,000 in September to just 346,000.

The lack of momentum comes despite recent political and institutional endorsements. The Trump administration has been slow to finalize its proposed Bitcoin strategic reserve, while Eric Trump’s push for BTC through World Liberty Financial has failed to trigger a breakout rally.

Gold Outperforms as Investors Seek Stability

Gold continues to outperform BTC, climbing over 9% year-to-date and hitting an all-time high of $2,882 per ounce, per TradingView data. The precious metal has gained 2.32% this week alone, extending its winning streak to six consecutive weeks.

According to UBS, gold’s rally underscores its reliability as a safe-haven asset, drawing capital away from Bitcoin and riskier investments.

Jobs Report Could Shape Market Direction

Market participants are now focused on Friday’s NFP report, which could influence Federal Reserve policy. Economists expect job growth to slow to 170,000 in January from December’s 256,000, while the unemployment rate is projected to remain at 4.1%. Wage growth is forecasted at 0.3% month-over-month, mirroring the previous report.

A weaker-than-expected report could bolster expectations of Fed rate cuts, potentially benefiting risk assets like Bitcoin. Additionally, the Trump administration’s push to lower Treasury yields could provide further liquidity support.

Conversely, stronger job data—especially in the context of trade tensions—could complicate the Fed’s outlook, increasing risk aversion and reinforcing gold’s dominance over Bitcoin in the short term.