SEC Proposal and Volatility Boost Bitcoin Above $87,000

Bitcoin held steady below $85,000 on Friday, after briefly topping $87,000 earlier in the day. The cryptocurrency's price remained higher than Thursday's range despite some volatility.

The price increase triggered substantial liquidations among traders who had bet against a rise in Bitcoin's value. About $142 million of short positions were liquidated over 24 hours, compared with roughly $29 million in long positions.

A new proposal from the U.S. Securities and Exchange Commission (SEC) on crypto custody is expected to boost institutional participation in the market. The proposal would allow investment advisers and funds to directly hold certain digital assets when a qualified third-party custodian is unavailable, subject to safeguards.

Strategy's Executive Chairman Michael Saylor detailed how his company finances its Bitcoin-focused business, separating Bitcoin accumulation from cash required to meet obligations. Strategy plans to vote on switching to daily dividend accruals for its STRC preferred shares on October 28.