Bitcoin Falters at $65k Ahead of Crucial US Inflation Data

Bitcoin held steady near $65,000 on Monday as investors awaited key US inflation data this week. The cryptocurrency has been buoyed by a weaker-than-expected non-farm payroll report last Friday, which showed the US lost 23,000 jobs in July. This defied expectations for an increase of around 85,000 and reinforced the view that the US labor market is cooling more rapidly than initially thought.

The unemployment rate unexpectedly fell to 4.1%, its lowest level since June 2025, while the participation rate dropped to its lowest level since 2021. This low-hire, low-fire environment has given the Federal Reserve room to hold off on a near-term rate hike, with market expectations for a September hike dropping to 45% from 57%.

However, $65,000 is acting as a barrier to further gains as investors look cautiously ahead to the US inflation report on Wednesday. The data will provide fresh clues over the Fed's path for interest rates and could quickly reverse the impact of Friday's weaker jobs data if it shows hotter-than-expected inflation.