Bitcoin Holds Above $85,000 as SEC Proposal Boosts Institutional Outlook

Bitcoin's price held below $85,000 on Friday after briefly reaching $87,000 earlier in the day. The cryptocurrency remained higher than its previous session high of $84,500 to $85,000.

The U.S. Securities and Exchange Commission (SEC) proposed changes to custody rules that would allow investment advisers and funds to directly hold certain digital assets when a qualified third-party custodian is unavailable, subject to safeguards. The proposal will enter a 60-day public comment period following publication in the Federal Register.

Bitcoin received support from softer U.S. economic data, including September nonfarm payrolls rising 29,000, below expectations of 90,000. This prompted declines in Treasury yields and the market reassessed the outlook for Federal Reserve interest rates.