Bitcoin Hits $87K as SEC Proposes Modernized Crypto Custody Rules

Bitcoin's price briefly breached $87,000 on Friday morning, marking the first time it has reached this level since September 23. This surge coincided with the release of weak U.S. employment data, which showed near-flat employment growth and an unemployment rate increase to 4.2%. The data sparked rate cut bets, leading to $142 million in short liquidations on Coinglass. The SEC also proposed new 1940 Act rules allowing investment advisors to custody crypto assets directly, which is expected to boost institutional participation.

The price of bitcoin was stuck in the $84,500 to $85,000 range until late Thursday, but an hour before midnight, it began climbing, gradually rising to $85,500 before a sharp rally added more than $1,000 in under 30 minutes to reach $86,780. A brief period of relative volatility followed as the price fluctuated between $85,500 and $86,000 before another gradual climb pushed bitcoin to an intraday peak of $87,219.

A rejection at $87,000 sent it lower before finding support above $85,000, leaving it with a daily gain of nearly 1% at a recent price of $85,188. The sudden upward surge caught traders shorting the cryptocurrency by surprise, with Coinglass data showing that $142 million in bitcoin short bets were liquidated versus about $29 million in longs.