Bitcoin Holds $65,000 as Investors Weigh Fed Outlook, Mideast Tensions

Bitcoin held relatively steady near the $65,000 mark in early trading Monday, as investors assessed the outlook for U.S. monetary policy and monitored geopolitical risks. The cryptocurrency received a boost last week from an unexpectedly soft U.S. jobs report, but its upward momentum has stalled ahead of key economic data.

As of 2:41 AM ET, Bitcoin was trading at $65,191.4, up approximately 0.5%, according to Investing.com data.

Fed Policy in Focus After Weak Jobs Data

Market sentiment for risk assets, including cryptocurrencies, improved after U.S. government data on Friday showed employers unexpectedly cut 23,000 jobs in July, contrary to forecasts of an 80,000 gain. Furthermore, payroll figures for May and June were revised down by a combined 103,000, signaling a cooling labor market.

This data reduced market expectations for further monetary policy tightening by the Federal Reserve, leading to a roughly 3% gain for Bitcoin last week. However, the $65,000 level has proven to be a significant technical resistance point. The market's focus now shifts to the U.S. Consumer Price Index (CPI) report, scheduled for release on Wednesday, which will provide fresh clues on the Fed's future policy path.

Geopolitical Risks and Technical Outlook

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The upcoming inflation data is particularly significant as energy prices remain sensitive to developments in the Middle East. Brent crude oil traded above $83 a barrel on Monday amid ongoing tensions, including reports that Iran is seeking concessions for a deal to reopen the Strait of Hormuz, a critical channel for global energy transport.

Analysts note that if Bitcoin can decisively break above $65,000, the next resistance area to watch is the $66,000 to $67,000 range. A failure to hold the current level could trigger a new wave of profit-taking.

Altcoin Market Trades Sideways

The broader cryptocurrency market showed a mixed and cautious tone on Monday, with most major altcoins trading within a narrow range.

• Ethereum (ETH), the second-largest cryptocurrency, rose 0.4% to $1,925.92.
• XRP fell 0.5% to $1.0357.
• Solana (SOL) gained 0.7%, while Cardano (ADA) was largely unchanged.
• Dogecoin (DOGE) saw a minor decline of 0.3%.