Bitcoin Jumps as SEC Plans New Crypto Rule for Investment Advisers
Bitcoin (BTC) price is up 0.57% to $85,108, slightly underperforming the broader market’s 0.77% rise, driven mainly by a modest macro-driven uptick across crypto assets.
The U.S. SEC plans to propose a new rule under the Investment Company Act of 1940 that would allow investment advisers to directly hold bitcoin and other digital assets when no qualified custodian is willing to custody them.
The SEC said that traditional custodians typically refuse to custody such assets, and the existing custody framework therefore has a compliance gap. The proposal will trigger a 60-day public comment period after publication in the Federal Register.
Crypto market data showed that total assets under management for U.S. spot Bitcoin ETFs reached $111.07 billion, up from $99.7 billion a month prior. This consistent inflow represents sustained institutional demand, providing a foundational bid for BTC’s price.
This is bullish for Bitcoin because it shows ongoing capital allocation from traditional finance, reducing selling pressure and enhancing market maturity. These regulated products act as a key conduit for long-term investment.
Bitcoin’s price is up 5.25% over the past 30 days. This stability comes as the broader crypto market sentiment sits in “Greed” territory with an index value of 67, down from 75 a month ago. High sentiment often signals an overextended market, which can precede a correction.
Market analysts said BTC’s 0.57% gain closely tracks the total crypto market cap’s 0.77% increase over the same period. The overall market’s rise suggests a modest, flow-driven uptick rather than a news-fuelled surge.
The move reflects general market sentiment rather than Bitcoin-specific alpha, highlighting its role as a market bellwether. Derivatives data shows a significant drop in liquidations and a slight decline in open interest, suggesting reduced speculative pressure and potential short-term stability.
The lack of a strong catalyst suggests the move is fragile and could reverse if broader market sentiment shifts.
The immediate technical structure is positive, with price above key moving averages like the 7-day average at $84,889.77. The key near-term trigger is the upcoming Federal Open Market Committee (FOMC) meeting concluding October 28, which will shape interest rate expectations.
If Bitcoin holds above the $84,300–$84,500 support zone, it will likely retest the $85,500–$86,000 resistance area. A daily close below $84,300 would weaken the structure and could lead to a decline toward the next support near $83,500.
The market is consolidating, awaiting clearer directional cues from macro events and Bitcoin’s ability to hold key levels.
Bitcoin’s modest rise is largely a function of broader market beta, with no strong independent catalyst. The cooling derivatives market provides a stable backdrop, but conviction remains low.
