Bitcoin CME Futures Gap Expands by $6K

Bitcoin’s recent price surge has led to a widening gap in the CME futures market, drawing attention from traders and analysts alike. Over the weekend, Bitcoin broke above $90,000, reaching a high of approximately $90,700, which resulted in the creation of a gap in the CME March futures. This gap occurred between market sessions, where no transactions took place, leaving a “non-traded zone.”

The rally on March 2, which saw Bitcoin increase by nearly 10%, was partly fueled by President Donald Trump’s announcement of a U.S. crypto reserve, which would include major cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano. This news likely contributed to the surge in Bitcoin’s spot price from around $84,000 to $90,700.

By March 2, Bitcoin’s price climbed even further to $95,000, widening the gap in CME futures to about $9,200. However, by the time of the report, the gap had narrowed slightly to approximately $6,000.

Futures gaps like these typically form due to changes in market sentiment. They represent price ranges where no trades occurred, and traders often view these gaps as areas where prices may eventually return to, or “fill,” over time. This can happen as orders accumulate in those price zones, leading to price movements back toward the gap’s range.

The gap created earlier this month follows a similar phenomenon seen in November, when a previous gap of about $4,300 was filled during a crypto sell-off. Now, with the current gap still open, traders speculate that Bitcoin’s price could revisit the $84,000 mark, potentially consolidating within the gap.

Despite the recent recovery, Bitcoin may still face some downside pressure. According to TradingView data, the BTC/USDT open interest on Binance was trading at $72,830, which is approximately $18,000 below both the spot price and futures price. This divergence suggests that the market might be adjusting and could experience further volatility in the coming days.

In summary, the recent surge in Bitcoin’s price and the creation of a CME futures gap highlight the ongoing volatility in the market. The gap could either be filled as prices consolidate, or it could signal further price corrections in the short term. Investors and traders will need to closely monitor market developments to determine the next move.