CME gaps—price differences that occur because the exchange is closed on weekends while spot markets operate around the clock—have historically served as magnets for bitcoin prices.
Updated March 4, 2025, 14:34 UTC Published March 4, 2025, 08:50 UTC
What you need to know:
- The gap in CME Bitcoin futures has been filled after a record price jump, potentially creating room for fresh gains.
- The latest rally came after President Trump announced the creation of a strategic reserve for cryptocurrencies, sending the price of Bitcoin to $92,000.
- However, the rally left a significant gap on the CME Bitcoin futures chart that has now been filled, which is often a signal of a possible correction after sharp swings.
A closely watched gap in CME Bitcoin (BTC) futures closed completely a day after a record opening and closing price jump, potentially setting the stage for another rally.
BTC jumped to $92,000 on Monday, fueled by renewed institutional interest following U.S. President Donald Trump's announcement Sunday evening of plans to create a strategic cryptocurrency reserve comprising the largest token, ether (ETH), XRP, Solana's SOL, and Cardano's ADA.
However, the rally left a significant gap on the CME Bitcoin futures chart between Friday's close at $84,500 and Monday's open at $95,300. That gap was fully closed by Asian afternoon hours on Tuesday, with BTC falling to $83,500.
CME gaps—price differences that occur because the exchange is closed on weekends while spot markets operate around the clock—have historically tended to act as a magnet for Bitcoin prices.
Statistics show that most of these gaps eventually fill, often signaling a correction after sharp moves, and Tuesday's gap filling is another example of how BTC tends to return to equilibrium after a sharp rise.
Meanwhile, Tuesday's price action wiped out more than $900 million in bullish bets on cryptocurrency-tracking futures over the past 24 hours, data shows, leading to a three-day loss of more than $1.5 billion.
Nearly $400 million in bets on a rise in Bitcoin prices have been liquidated in the last 24 hours, with much of it occurring late in the US and early in Asia as BTC prices reversed their gains on Monday.
Liquidations occur when an exchange forcibly closes a leveraged trader's position due to a partial or complete loss of the trader's initial margin. This happens when a trader fails to meet the margin requirements for a leveraged position, meaning they do not have enough funds to keep the trade open.
Unusually high liquidations can be used in combination with other market indicators in trading strategies. Assets can be considered overbought and ready to reverse or take profits – making them an important data set to monitor.
So is there reason for optimism now that the gap has been filled and a major liquidation has taken place? Perhaps not.
The breakout of the bearish range has put another gap in CME bitcoin futures below $80,000, which formed three months ago, under close scrutiny.
The gap emerged in CME futures after Trump was first elected president in early November, with prices opening above $81,000 — one tick above the Election Day high of $77,930.
