Will Bitcoin or Gold Win the Battle of the Century? 💰✨

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In the ever-evolving realm of finance, the price of Bitcoin, that most curious of currencies, now rests at a rather unimpressive BTC $97,306. Alas, it appears to be under a most unfortunate selling pressure, having slipped beneath the $97,000 threshold just as the US jobs data is poised to make its grand entrance this Friday. The enthusiasm of traders, once as vibrant as a Regency ball, seems to be waning, much like the fading light of a candle in a draughty drawing room, as the liquidity of the US dollar diminishes and the Federal Reserve maintains its stern grip on interest rates. In contrast, the price of gold, that timeless treasure, continues its ascent, now reaching a dazzling high of $2,840, driven by an insatiable global demand for this yellow metal.

Bitcoin Network Activity and Fair Price Estimate

According to the esteemed blockchain analytics firm, CryptoQuant, the activity within the Bitcoin Network has experienced a staggering decline of 15%, plummeting from a high of 3,760 points in November 2024 to a rather disheartening one-year low. Furthermore, the daily transactions on the BTC network have taken a nosedive, decreasing by a remarkable 53% from an all-time high of 734,000 in September to a mere 346,000.

Moreover, this same firm has suggested that the fair value of Bitcoin lies somewhere between $48,000 and $95,000, indicating that our dear BTC may be rather overvalued at its current price of $98,000. Since its recovery from a rather unfortunate drop earlier this week, Bitcoin has struggled to maintain its momentum above the coveted $100,000 mark. The market sentiment, it seems, has taken a turn for the worse, as the optimism surrounding Mr. Trump’s strategic Bitcoin reserve announcement has faded like a forgotten sonnet.

In a further twist of fate, inflows into spot Bitcoin ETFs have also slowed, as uncertainty looms over the market. On Thursday, the net flows were decidedly negative, with a total outflow of $140 million. Fidelity’s FBTC witnessed over $100 million in outflows, while Grayscale’s GBTC saw more than $42 million depart. The BlackRock Bitcoin ETF (IBIT) recorded a rather dismal zero inflows yesterday, suggesting that the market sentiment is indeed waning.

Gold Price Continues to Drive Higher Gains

The illustrious yellow metal, gold, has recently captured the attention of many, soaring more than 9% year-to-date to achieve a record high of $2,882 per ounce, as per the data from TradingView. Over the past week, it has gained a modest 2.32% and is on track for its sixth consecutive week of inflows. How delightful!

UBS has noted that gold’s upward trajectory reflects its “lasting appeal as a store of value and hedge against uncertainty,” drawing investors away from Bitcoin’s rather lackluster performance. One must wonder if gold is not the belle of the ball in this financial soirée.

Analyst Mary has observed that the market sentiment today is being swayed by economic data, with gold (XAUUSD) holding steady within the 2844-2858 zone. The precious metal continues to consolidate above its previous resistance level, with buyers maintaining control and keeping the bullish trend intact. As long as the price remains above 2858, the next target is a lofty 2915, in line with the rising channel. How splendid!

Source: Mary

US Jobs Data to Play a Decisive Role

The eagerly awaited nonfarm payrolls (NFP) report, set to be unveiled this Friday, shall provide insights into the state of the job market for January. Estimates from FXStreet suggest a slowdown in job additions to 170,000, a decline from December’s 256,000. The unemployment rate is likely to remain unchanged at 4.1%, while average hourly earnings are expected to rise by

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2025-02-07 12:58