Bitcoin Surges Above $85,000 on SEC Proposal and Soft Economic Data

Bitcoin's price surged above $85,000 on Saturday, driven in part by a new proposal from the U.S. Securities and Exchange Commission (SEC) that could boost institutional participation in the cryptocurrency.

The SEC's proposal would allow investment advisers and funds to directly hold certain digital assets when a qualified third-party custodian is unavailable, subject to safeguards. This change would provide an alternative route for funds and advisers to hold such assets under federal securities rules.

Bitcoin's price increase also received some support from softer U.S. economic data, including a lower-than-expected September nonfarm payrolls number. This led to declines in Treasury yields and the dollar, as markets reassessed the outlook for Federal Reserve interest rates.

Corporate demand remains another key part of the Bitcoin market. Strategy Executive Chairman Michael Saylor detailed how the company finances its Bitcoin-focused business and maintains dollar reserves for dividends and debt interest. Meanwhile, Supercycle Finance plans to raise up to $75 million through a proposed offering, with most of the proceeds intended for Bitcoin purchases.