Bitcoin Price Fails to Break $87K as CFTC Signals New Crypto Rules

During bitcoin’s latest attempt, the reversal was swift as the price tumbled from $86,615 to $85,503 in less than 20 minutes. As of 1:05 p.m. EST, the cryptocurrency had fallen further to trade just above $85,200, leaving its market capitalization virtually unchanged from 24 hours earlier at $1.71 trillion.

The volatile price action resulted in over $109 million in leveraged bitcoin positions being wiped out. Coinglass data shows liquidated short positions accounted for the lion’s share of the liquidations at $62 million, compared to $47 million in long bets. Across the broader cryptocurrency market, short liquidations totaled $122 million, while long liquidations reached nearly $116 million.

CFTC Takes Step Toward Crypto Rulemaking

Notwithstanding the current range-bound price action, analysts maintain an optimistic outlook, anticipating that the broader “Uptober” trend will reignite buying pressure and pave the way for a net-positive finish to 2026. Adding to the bullish sentiment, U.S. regulatory agencies are stepping in to craft clear operational rules following Congress’s failure to pass the CLARITY Act, a move widely interpreted as a long-term tailwind for digital asset adoption.

The Commodity Futures Trading Commission became the latest agency to signal this trend when it announced Oct. 5 that it is seeking public comment on an Advance Notice of Proposed Rulemaking regarding crypto asset transactions. According to CFTC Chairman Michael S. Selig, the move “is a critical step in the CFTC’s ongoing efforts to ensure America remains the crypto capital of the world.”

The CFTC said public feedback, which it intends to use to inform potential future agency action or rulemaking, must be received within 60 days of the notice’s publication.