Bitcoin pulled back below $85,000 on Saturday after a brief climb past $87,000, supported by new U.S. regulatory proposals for digital asset custody and weaker-than-expected September employment data that adjusted Federal Reserve rate expectations.
Bitcoin Climbs to $87,000 Before Retracing
That peak represented the highest level for the asset since September 23. Price action encountered a barrier at the $87,000 resistance level as technical indicators flashed overbought signals, prompting a cooldown that tested support above the $85,000 threshold. Despite the weekend dip, the asset maintained a weekly gain, extending an upward trajectory that traders associate with historical seasonal strength.
Ethereum, the second-largest cryptocurrency by market capitalization, traded down 1.42% to $2,678.29, while XRP declined by 0.51% to 1.4894 USD. Solana moved lower by 0.34% to $119.12, and Binance Coin (BNB) slipped 0.40% to 768.96. Conversely, Cardano gained 0.49% to $0.2476, whereas Dogecoin registered a 0.79% decrease.
Rising Unemployment Triggers Expectations for Monetary Easing
Unemployment ticked up to 4.2%. The soft employment figures triggered an immediate retreat in U.S. Treasury yields and the U.S. dollar index as markets recalibrated expectations for monetary easing by the Federal Reserve.
Lower benchmark interest rates diminish the opportunity cost of holding fixed-supply assets, providing structural backing for the cryptocurrency.
SEC Proposes Rules for Advisers to Hold Digital Assets
Regulatory developments added momentum as the Securities and Exchange Commission introduced proposed amendments under the Investment Advisers Act of 1940 to permit investment advisers to hold certain digital assets directly. The framework applies when a qualified third-party custodian is unavailable, subject to strict protective safeguards. The rule change is designed to establish an additional compliance pathway for institutional funds seeking crypto exposure outside traditional custody networks.
SEC Commissioner Hester Peirce announced her departure from the agency scheduled for October 2. Peirce had participated in leading the commission’s crypto working group addressing token classification, staking, and tokenized securities. Her departure followed the U.S. Senate’s failure to advance the Digital Asset Market Clarity Act, alongside the Blockchain Association announcing that Chief Executive Officer Summer Mersinger was stepping down to be temporarily succeeded by former CEO Kristin Smith.
Institutional Treasury Strategies and Liquidation Pressures
Strategy added 1,665 bitcoin during the preceding week while detailing financing mechanisms. The firm’s preferred stock carries a 12% annual dividend rate, with a shareholder vote scheduled for October 28 on a proposal to calculate distributions daily to enhance liquidity and capital access.
The sudden price expansion caught leveraged traders off guard.
U.S. spot exchange-traded funds absorbed inflows over successive trading sessions, highlighted by a single-day influx of capital. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) captured institutional allocations across the spot market despite intermittent outflows recorded in late-September sessions.
