BTC struggles amid weak on-chain activity while gold shines bright ahead of the pivotal U.S. nonfarm payrolls report.

Key points:
1. Bitcoin’s current status

Bitcoin ($96,868.89, -1.33%) is still struggling below $100K.

CryptoQuant says BTC’s “true value” should be between $48K and $95K, meaning it may be overvalued.

Bitcoin’s network activity index has dropped 15%, hitting a one-year low.

Daily transactions have fallen 53%, from 734,000 to 346,000.

Despite Eric Trump’s support for BTC, the price has not seen a major increase.

2. Gold (XAU) is strong

Gold has hit a record $2,882 per ounce, heading for its sixth consecutive week of gains.

It has gained 9% since the start of 2025.

UBS says investors are “more likely to favor gold as a safe-haven asset than Bitcoin.”

3. Upcoming US Non-Farm Payroll (NFP) Report and Its Implications

The US NFP report will be released on Friday (February 7, 2025).

Job growth is expected to fall to 170K from 256K in December.

If the NFP comes in weaker than expected, the market will be more optimistic about the Fed cutting interest rates soon, which could boost BTC and stocks.

If the NFP comes in stronger, it will create a challenge for the Federal Reserve and risk aversion in the market could increase, which could put BTC under further pressure.

What should you do?

Watch for strong support and resistance in Bitcoin’s $95K-$100K zone.

Avoid making any major decisions before the NFP data is released.

If BTC falls below $95K, further declines are likely.

Gold is looking stronger at the moment, as investors are flocking to it amid volatility.