Bitcoin’s Network Activity Index Drops 15 Percent Since November, Gold’s Rise Continues! Here Are the Details

Bitcoin (BTC) continues to pause as weak on-chain activity dampens investor sentiment, while gold remains on an upward trajectory ahead of the all-important U.S. nonfarm payrolls report.

Gold Rises, Bitcoin Continues to Fall Ahead of Key US Employment Report

Despite Bitcoin recovering from the recent drop, it has struggled to maintain momentum above $100,000.

Analysts at CryptoQuant estimate BTC’s fair value to be between $48,000 and $95,000, suggesting the asset may be overvalued at its current price level of $97,000.

In addition, Bitcoin’s Network Activity Index has fallen by 15% since November, reaching 3,760 points, its lowest level in more than a year.

The decline was driven by a 53% drop in daily transactions, falling from an all-time high of 734,000 in September to just 346,000.

The Trump administration’s slow progress on creating a proposed BTC strategic reserve has also dampened sentiment. Even Eric Trump’s recent support for BTC through his family-linked World Liberty Financial has failed to generate significant bullish momentum.

In contrast, gold is up over 9% year to date, hitting an all-time high of $2,882 per ounce.

The metal, which has gained 2.32% this week alone, marked its sixth consecutive weekly gain. UBS analysts say gold’s role as a store of value and hedge against uncertainty is a factor that has distracted investors from Bitcoin’s modest price action.

All Eyes on Nonfarm Payrolls and the Fed

Friday’s U.S. nonfarm payrolls (NFP) report is expected to be a key market mover. Forecasts tracked by FXStreet predict that 170,000 new jobs will be added in January, up from 256,000 in December, and the unemployment rate will remain at 4.1%.

A weaker-than-expected report could revive hopes for Federal Reserve rate cuts and potentially boost riskier assets like Bitcoin and stocks. On the other hand, strong employment data combined with rising tariffs could complicate the Fed’s rate strategy and lead to risk aversion and further weakness in BTC.

*This is not investment advice.

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