The number of victims rose as bodies were recovered from the rubble in the Karrada area of Baghdad, where a refrigerator truck packed with explosives blew up on Saturday night.
The attack is the deadliest since US-backed Iraqi forces last month scored a major victory when it dislodged Islamic State from their stronghold of Fallujah.
After nearly five weeks of fighting, Iraqi forces recaptured the last district held by Islamic State militants in the city of Fallujah.
Iraqi government-run camps struggled on Sunday to shelter people fleeing Fallujah, as the military battled Islamic State militants in the city's northern districts.
Abadi's decision to halt, two days after elite Iraqi troops poured into the city's rural southern outskirts, postpones what was expected to be one of the biggest battles ever fought against Islamic State.
Iraqi government security forces and allied militias continued their assault on the Islamic State-held town of Fallujah on Wednesday, killing more civilians than militants in the process, according to sources inside the city.
Iranian Revolutionary Guard Commander Qassem Suleimani made an appearance with Iraqi Shiite militias outside Fallujah as the UN warned that as many as 10,000 civilians remain trapped inside the Islamic State-held town.
The move comes after Iraq's prime minister announced an offensive to retake the city as a wave of deadly bombings claimed by Islamic State have killed hundreds in and around Baghdad.
The protesters included supporters of powerful Shia Muslim cleric Moqtada al-Sadr, who expressed support for what he called a "peaceful spontaneous revolt."
Islamic State, which controls swathes of the Iraq's north and west, has carried out a string of bombings this week that killed around 100 people.