Bitcoin traded near $65,000 on Monday after climbing above the key level following a weaker-than-expected U.S. jobs report. Investors remained cautious ahead of important U.S. inflation data and continued to monitor geopolitical risks in the Middle East.
The world’s largest cryptocurrency was last up around 0.4% at $65,159.4.
Weak U.S. Jobs Data Supports Bitcoin
U.S. employment data released on Friday showed that employers unexpectedly cut 23,000 jobs in July.
Economists had expected payrolls to increase by roughly 80,000.
Employment figures for May and June were also revised lower by a combined 103,000 jobs. The revisions added to signs that the U.S. labor market may be losing momentum.
Despite the weaker payroll figures, the unemployment rate edged down to 4.1%.
The softer jobs report reduced expectations for near-term Federal Reserve tightening. This helped support demand for risk-sensitive assets, including Bitcoin and other cryptocurrencies.
Bitcoin gained approximately 3% over the past week.
Bitcoin Struggles to Extend Gains Above $65,000
Despite the rebound, Bitcoin has struggled to build strong momentum above the $65,000 level.
The price area has acted as an important technical barrier during recent trading sessions.
Traders are now watching whether Bitcoin can establish a more convincing move above this level or whether profit-taking could push prices lower again.
U.S. Inflation Data Takes Center Stage
Market attention is now shifting toward Wednesday’s U.S. Consumer Price Index report.
The inflation data could provide fresh clues about the Federal Reserve’s next policy decision and the broader direction of U.S. interest rates.
A softer inflation reading could strengthen expectations for a more accommodative Fed policy stance. In contrast, stronger-than-expected inflation could increase uncertainty around future rate decisions.
For Bitcoin, interest rate expectations remain important because lower rates generally improve liquidity conditions and support demand for risk assets.
Middle East Tensions Keep Inflation Risks in Focus
Geopolitical developments in the Middle East are also influencing market sentiment.
Brent crude traded above $83 per barrel on Monday as uncertainty remained around the Strait of Hormuz.
Reports indicated that Iran is seeking concessions from the United States before agreeing to reopen the key shipping route.
The Strait of Hormuz plays a major role in global energy markets, with a significant share of global oil and gas shipments passing through the waterway.
Any prolonged disruption could push energy prices higher and increase inflationary pressures.
Higher oil prices could also complicate the Federal Reserve’s policy outlook, making upcoming inflation data even more important for financial markets.
Global Risk Appetite Supports Crypto Markets
Bitcoin’s recent rebound has also coincided with strength in global equity markets.
Major stock indexes remain close to record highs, helping support broader investor appetite for riskier assets.
If Bitcoin can maintain a sustained move above $65,000, analysts are watching the $66,000 to $67,000 area as the next potential resistance zone.
However, a failure to hold above $65,000 could leave Bitcoin vulnerable to renewed profit-taking.
Altcoins Trade Mixed as Crypto Market Stays Cautious
Most major altcoins traded within relatively narrow ranges on Monday as investors maintained a cautious stance.
Ethereum, the world’s second-largest cryptocurrency, traded largely unchanged near $1,919.92.
XRP slipped around 0.4% to $1.0314.
Solana gained approximately 0.4%, while Cardano fell about 0.5%.
Among major meme cryptocurrencies, Dogecoin edged 0.3% lower.
Bitcoin Traders Await the Next Major Catalyst
Bitcoin remains supported by softer U.S. labor data and generally positive risk sentiment, but traders appear reluctant to push prices significantly higher before the release of U.S. inflation figures.
At the same time, developments involving Iran and the Strait of Hormuz continue to create uncertainty for global energy markets.
With inflation, interest rate expectations and geopolitical risks all in focus, Bitcoin could face increased volatility as investors assess the next major catalyst for the cryptocurrency market.
