Bitcoin traded slightly higher on Monday as investors balanced a positive regulatory development in the crypto sector against continued pressure from rising U.S. Treasury yields.
The world’s largest cryptocurrency was up around 0.1% at $85,953.1 by 17:53 ET.
Bond Selloff Keeps Pressure on Risk Assets
Rising global borrowing costs remained a major concern for investors.
The benchmark U.S. 10-year Treasury yield climbed 2.8 basis points to finish at 5.308%.
Several factors have contributed to the bond market selloff. These include concerns about an oil-driven inflation shock, growing fiscal debt and more hawkish central-bank policy.
Investors are also watching the large amount of corporate debt being issued to finance artificial intelligence infrastructure projects.
The weakness has spread beyond the United States, increasing volatility across global fixed-income markets.
French Bond Yields Add to Market Concerns
France has also become a source of pressure for bond markets.
Last week, the country’s benchmark 10-year yield reached its highest level since July 2002 following the release of France’s 2027 budget proposal.
The government is targeting a public deficit equal to 5% of gross domestic product. Officials have proposed around €54 billion, or roughly $60.5 billion, in spending cuts.
However, France continues to face significant fiscal challenges.
Its deficit is projected to reach around 5.4% of GDP this year, while public debt is approaching 120% of GDP.
Fed Rate Hike Expectations Remain Limited
Shorter-term U.S. bonds received some support after recent economic data reduced expectations for an immediate Federal Reserve rate increase.
The Fed’s preferred inflation measure showed slower annual growth.
At the same time, a weaker-than-expected U.S. nonfarm payrolls report suggested that labor-market conditions may be cooling.
Bitcoin had climbed as high as $87,128.6 on Friday following the employment report.
The cryptocurrency has also benefited from net inflows into U.S. spot Bitcoin exchange-traded funds.
CFTC Proposes New Crypto Registration Framework
Regulatory developments also provided some support for crypto sentiment.
The Commodity Futures Trading Commission opened a 50-day public consultation on Monday regarding a proposed framework for leveraged digital asset trading aimed at retail investors.
The plan would introduce a dedicated registration category called a “crypto asset market.”
This classification would apply to platforms offering leveraged, financed or margin-based cryptocurrency transactions.
The proposed rules aim to establish clearer industry standards and expand regulatory oversight.
The CFTC also wants to strengthen compliance requirements designed to prevent fraud before it occurs instead of relying mainly on enforcement after violations take place.
CFTC Chairman Michael Selig said the agency is seeking to provide greater clarity, regulatory certainty and consumer protection for U.S. crypto markets.
OKX-ICE Plans Tokenized U.S. Stock Trading
Elsewhere in the digital-asset sector, OKX-ICE has informed the U.S. Securities and Exchange Commission that it plans to launch a tokenized securities trading platform.
OKX-ICE is a joint venture between crypto exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange.
The proposed platform would offer permissioned, on-chain trading of tokenized U.S. equities through the X Layer network.
More than 60 U.S.-listed companies are expected to be available, while issuers would have 30 days to opt out.
The filing follows the SEC’s recent decision to introduce a five-year exemption allowing certain venues to offer tokenized versions of U.S.-listed stocks without registering as traditional exchanges.
Planned assets include shares linked to Nvidia, Apple, Microsoft, Amazon, Tesla, JPMorgan Chase, Walmart and SpaceX.
Strategy Adds Another 334 Bitcoin
Strategy also expanded its Bitcoin holdings.
The company purchased another 334 BTC for approximately $28.7 million between Sept. 28 and Oct. 4, according to an SEC filing.
The average purchase price was around $85,838.80 per Bitcoin.
The latest acquisition increased Strategy’s total holdings to 848,000 BTC, worth roughly $73 billion at current market prices.
Co-founder and executive chairman Michael Saylor said the company has spent approximately $64 billion on its Bitcoin holdings, including fees and expenses.
Its average acquisition price stands at about $75,440.70 per Bitcoin.
Altcoin Market Trades Mixed
The broader cryptocurrency market showed mixed performance on Monday, although several major altcoins moved higher.
Ethereum gained around 0.6% to $2,716.74.
XRP remained nearly unchanged at $1.5073.
Solana slipped 0.4%, while BNB fell around 0.8%.
Cardano was one of the strongest performers, climbing approximately 6.5%.
Among meme cryptocurrencies, Dogecoin declined around 0.7%.
