Bitcoin edged up after touching a two-month low on Monday, as investors eyed reports of substantial sell-offs from dormant "whale" wallets and geared up for a crucial U.S. jobs report later this week.

The world’s largest cryptocurrency last traded 0.2% higher at $108,615.2 as of 07:13 ET (11:13 GMT). The digital token fell to as low as $107,274.6 earlier in the session, its lowest level since early July.

Media reports suggested that there have been transfers of large amounts of the cryptocurrency for conversion into Ether, signaling renewed profit-taking activity among large holders.

Meanwhile, U.S. spot Bitcoin ETFs continued to see outflows, contrasting sharply with strong inflows into Ethereum ETFs during August.

Bitcoin’s pullback also coincided with seasonal caution. Often dubbed "Red September," the month has historically seen declines as traditional markets screen higher volatility during the period.

Traders cautious ahead of U.S. jobs report

Traders see a roughly 89% chance that the Federal Reserve will lower its benchmark rate by 25 basis points at its Sept. 16-17 meeting, according to CME’s FedWatch Tool.

Expectations were reinforced after Fed Chair Jerome Powell said at the Jackson Hole conference last month that policymakers were prepared to adjust policy if inflation continued to moderate and the labor market showed signs of cooling. 

Data released on Friday showed that the U.S. core personal consumption expenditures price index, the Fed’s preferred gauge of inflation, rose in line with expectations.

Investors are now turning their attention to Friday’s nonfarm payrolls report for August, with analysts anticipating that a soft or tepid reading could all but cement bets for a Fed cut. Adding to investor unease are broader market headwinds, including President Trump’s shifting tariff rhetoric and attempts to influence the Fed.