Bitcoin's price movement today is largely influenced by a stronger-than-expected U.S. private payrolls report, which has raised concerns about the Federal Reserve's interest rate policy. The ADP report showed that the economy added 183,000 jobs in January, surpassing expectations and suggesting that the Fed might maintain higher interest rates for longer. This has put pressure on Bitcoin and other cryptocurrencies, as a strong labor market could delay anticipated rate cuts, impacting investor sentiment. Additionally, ongoing U.S.-China trade negotiations and recent retaliatory actions from China have added to the market's uncertainty, further affecting Bitcoin's price dynamics.
The cryptocurrency market is also reacting to a decline in Bitcoin's network activity, which has reached its lowest level in a year. This decrease in activity, coupled with a dip in Bitcoin's realized price level, has contributed to the downward pressure on its price. Analysts have pointed out that Bitcoin's network activity has decreased by 15% since its peak in November 2024, with the total daily transaction count dropping significantly. This reduction in network usage is seen as a potential indicator of overvaluation, with some analysts suggesting that Bitcoin's fair value could range between $48,000 and $95,000.
Bitcoin's price has experienced a slight decline of 0.27% today, currently trading at $97,545.58. The cryptocurrency reached a high of $98,884.63 earlier in the day but has since faced downward pressure.