Key Points
- A $10,350 price gap, the largest in history, has been recorded on the Chicago Mercantile Exchange’s Bitcoin futures.
- The gap was created after Bitcoin’s value surged following the announcement of a U.S. Crypto Strategic Reserve.
The Bitcoin futures on the Chicago Mercantile Exchange have noted a significant price gap of $10,350, marking the largest recorded in the exchange’s history.
Data from TradingView on March 2 indicates that the CME Bitcoin (BTC) futures closed at $84,650 in one session and opened at $95,000 in the next, resulting in this substantial gap.
Understanding CME Gaps
CME gaps occur due to the 24/7 trading nature of Bitcoin on global crypto markets, while CME futures halt during weekends. If Bitcoin’s price sees a significant move during this pause, a gap is formed between the closing price on Friday and the opening price on Sunday evening.
It’s common for traders to monitor these gaps as Bitcoin has a trend of “filling” them. This means that its price typically returns to the gap level before moving in either direction due to liquidity imbalances, as institutional traders often set orders around untraded price zones.
Bitcoin’s Recent Movements
This recent gap was formed after Bitcoin’s value jumped from $85,000 to almost $95,000. This surge was in response to President Trump’s announcement of a U.S. Crypto Strategic Reserve on March 2, which injected over $300 billion into spot markets, pushing Bitcoin and other altcoins higher.
Bitcoin has already filled a prior gap between $92,800 and $94,000. However, in doing so, it has created an even larger one between $84,650 and $94,000. Many traders expect that Bitcoin will eventually return to these levels, even though it might take weeks or possibly months.
Historically, large gaps tend to fill, but the timing remains unpredictable. During the 2021 bull market, some gaps only closed in the following bear market. Despite Bitcoin’s current uptrend, traders are closely watching to see if the market will close this gap through a correction.