Bitcoin Climbs Toward $87,000 as Weak Jobs Data Meets a New SEC Custody Proposal

Weak Payrolls Shift the Macro Picture

The September employment report showed the U.S. economy added only 29,000 jobs. Forecasters had expected roughly 84,000 to 90,000. The unemployment rate rose to 4.2%, pointing to a cooling labor market rather than a sudden collapse.

Bitcoin reacted with a gain of about 3% over 24 hours, trading near $86,700. Ether also strengthened, moving above its recent sideways range to around $2,750. The logic is familiar: softer job creation weakens the case for a Federal Reserve rate increase this month, and easier policy expectations tend to support risk assets. Inflation gauges, including a factory-sector price index that remains elevated, keep the picture from being a clear green light.

Leverage and ETF Flows Add Fuel

The rally was amplified by derivatives. According to CoinGlass data, about $363 million in positions were liquidated over the past day, and roughly $270 million of that came from short sellers forced to close. Open interest has climbed to around $56 billion, and funding rates have risen sharply, which suggests new leveraged long positions are entering the market.

Institutional demand also improved. SoSoValue data shows U.S. spot bitcoin ETFs recorded net inflows of about $103 million, led by BlackRock's IBIT, while Fidelity's FBTC saw outflows. Ether ETFs, by contrast, posted net outflows of roughly $55 million.

SEC Proposes a Custody Framework for Advisers and Funds

On October 1, the SEC proposed new rules for how registered investment advisers and regulated funds can custody crypto assets. The framework would allow state-chartered trust companies to serve as custodians. It would also permit limited self-custody under strict cybersecurity controls. SEC Chair Paul Atkins has framed the move as recognition that crypto has grown into a trillion-dollar asset class.

This is a proposal, not a final rule. A 60-day public comment period begins once it is published in the Federal Register, and the commission must vote again before anything takes effect. Market reports also indicate that the SEC and the CFTC are working on joint rules after the stalled CLARITY Act, though no details have been finalized.

What It Means for Investors

Clearer custody rules would remove a long-standing obstacle for traditional asset managers that want regulated exposure to digital assets. Combined with a softer rate outlook, that supports a constructive near-term narrative for bitcoin.

The risks are just as real. Heavy leverage can turn small price moves into sharp liquidation cascades, and sentiment indicators already sit in "greed" territory. Traders will watch whether bitcoin can hold its gains near the high-$86,000 area, how the comment period shapes the final custody rules, and whether upcoming inflation data changes the Fed outlook.