Bitcoin Price Drops Below $97,000 Ahead of US Jobs Data Release
Bitcoin price remains under pressure, dropping below $97,000 ahead of US job data, affected by drying US dollar liquidity and sustained high interest rates from the Federal Reserve. In contrast, gold prices are rising, reaching $2,840 due to strong global demand.
Bitcoin Network Activity and Fair Price Estimate
- Bitcoin network activity has declined by 15%, hitting a one-year low.
- Daily BTC transactions decreased by 53% from a peak of 734,000 in September to 346,000 currently.
- CryptoQuant estimates Bitcoin's fair value between $48,000 and $95,000, indicating current overvaluation at $98,000.
- BTC struggles to maintain momentum above $100,000 amid declining market sentiment.
- Spot Bitcoin ETFs experienced negative net flows totaling $140 million, with significant outflows from Fidelity’s FBTC and Grayscale’s GBTC.
Gold Price Continues to Drive Higher Gains
- Gold has increased over 9% year-to-date, reaching a record high of $2,882 per ounce.
- The metal gained 2.32% over the past week, marking its sixth consecutive week of inflows.
- UBS notes gold's appeal as a store of value, drawing investors away from Bitcoin.
- Gold is consolidating above previous resistance, with potential targets set at 2915 if it remains above 2858.
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Source: Mary
US Jobs Data to Play a Decisive Role
- The nonfarm payrolls report is expected to show a slowdown in job additions to 170,000 for January.
- The unemployment rate is anticipated to remain at 4.1%.
- Average hourly earnings are projected to rise by 0.3% month-on-month.