Bitcoin Rallies on a Labor Market Surprise
Bitcoin pushed toward the $87,000 mark on Friday after the U.S. Labor Department reported that the economy added only 29,000 jobs in September. Economists had expected a gain of roughly 84,000 to 90,000. The unemployment rate rose to 4.2%, and hourly wage growth was a modest 0.1%.
The market read the data as a sign of a cooling labor market rather than a collapse. That reading weakens the case for another Federal Reserve rate hike this month, which is bullish for risk assets. Bitcoin gained more than 3% over 24 hours and trades around $86,700, while Ether climbed above $2,700 and broke out of its recent sideways range.
Leverage and ETF Flows Add Fuel
Derivatives data shows the move was amplified by forced buying. Total liquidations over 24 hours reached about $363 million, and short positions accounted for roughly $270 million of that. Bitcoin's dominance stands near 59%, which suggests capital is concentrating in the largest asset.
Institutional demand also returned. U.S. spot Bitcoin ETFs recorded net inflows of about $103 million, led by BlackRock's IBIT with roughly $196 million, while Fidelity's FBTC lost around $61 million. Spot Ether ETFs, by contrast, saw net outflows of about $55 million. Traders should note that heavy leveraged positioning can also deepen pullbacks if sentiment turns.
SEC Proposes a Custody Framework for Advisers and Funds
In Washington, the Securities and Exchange Commission put forward a proposed rule for how registered investment advisers and regulated funds safeguard crypto assets. The framework would allow state-chartered trust companies to act as custodians. It would also permit limited self-custody, provided strict cybersecurity controls are in place.
The proposal arrives as Commissioner Hester Peirce, who led the agency's Crypto Task Force, departs this week. SEC Chair Paul Atkins has said the crypto market has matured into a trillion-dollar asset class that deserves a tailored approach. After the proposal is published in the Federal Register, the public will have 60 days to comment.
Why the Two Stories Are Connected
The custody proposal matters because clear rules are a prerequisite for large pools of institutional capital. Meanwhile, the stalled CLARITY Act has pushed the SEC and the CFTC toward drafting joint rules of their own. Combined with returning ETF inflows, a clearer rulebook could make it easier for advisers and funds to allocate to digital assets.
What to Watch Next
Markets will now focus on whether Bitcoin can hold support near $82,600 and clear resistance in the $87,200–$87,600 zone. The Fed's October decision, the SEC comment period and the next inflation data are the next major catalysts. This article is for informational purposes only and is not investment advice.
