Bitcoin Price Falls to $84,000: CME Futures Gap Closed, Almost $1 Billion Liquidated

Bitcoin (BTC) has closed a significant CME futures gap after the price briefly rose to $92,000. The rapid price movement was sparked by an announcement from US President Donald Trump, who brought a strategic crypto reserve into play. However, the surge was followed by a correction that resulted in nearly $1 billion in leveraged bets being liquidated.

CME gaps as a market indicator

CME gaps occur because Bitcoin futures trading on the Chicago Mercantile Exchange (CME) pauses over the weekend while the spot market is open 24/7. This can create price differences between the last trading price on Friday and the opening price on Monday. These gaps have historically proven to be “magnets” for the Bitcoin price and are often filled sooner or later.

On Monday, BTC jumped to $92,000 on institutional euphoria triggered by Trump’s crypto reserve plan, which is set to include not only Bitcoin but also Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). However, the rally left a striking gap between Friday’s close of $84,500 and Monday’s open of $95,300. This gap was closed by a correction on Tuesday, when Bitcoin fell to $83,500.

Almost $1 billion in Bitcoin liquidated – market in turmoil

The abrupt price reversal triggered massive liquidations. Over $900 million in bullish bets on Bitcoin and other cryptocurrencies were unwound within 24 hours, bringing losses to over $1.5 billion in three days. $400 million of that alone was on leveraged long positions in Bitcoin, which were forcibly liquidated mainly during late US and early Asian trading hours.

Liquidations occur when an exchange forces a leveraged position to close because the trader no longer has enough capital to cover margin requirements. High liquidations can act as a contrarian indicator and point to an imminent market turn.

Is the next sale coming now?

While some market observers hoped that the closing of the gap would bring about stabilization, risks remain. Another unclosed CME gap below $80,000 is in focus. This was created in November when Bitcoin opened above $81,000 after Trump’s election victory. If Bitcoin continues to fall, this gap could serve as the next support zone.

It remains to be seen whether the market can start a new upward move after the recent correction or whether there will be another pullback. Traders will be watching closely in the coming days to see whether Bitcoin can stabilize above the $80,000 mark or whether the next CME gap comes into play.

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(Featured image by DS stories via Pexels)

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