Bitcoin Dips to $83.5K, Fulfills CME Futures Gap as Nearly $1B in Longs Get Liquidated
Bitcoin (BTC) has dropped to $83,500, fully closing a major CME futures gap left over the weekend after a surge to $92,000. The gap, created by CME’s Friday close at $84,500 and Monday’s opening at $95,300, has now been filled—aligning with historical patterns where BTC often retraces to close such discrepancies.
The rally was initially driven by President Trump’s announcement of a U.S. strategic crypto reserve, sparking optimism across the market. However, profit-taking and macroeconomic concerns have triggered a sharp reversal, bringing Bitcoin back below key support levels.
This sudden drop has liquidated nearly $1 billion in leveraged long positions in the past 24 hours, according to data from Coinglass. The broader three-day liquidation figure has now surpassed $1.5 billion as traders who bet on continued upside were forced to exit.
Liquidations of this magnitude often exacerbate price swings, triggering cascading sell-offs as margin calls push traders out of their positions. While some analysts view this as a healthy market reset, others warn of further downside pressure.
Adding to concerns, traders are now watching another unfilled CME gap below $80,000. This gap dates back to early November when Bitcoin surged above $81,000 following Trump’s reelection. If BTC follows its historical trend, it could test lower levels before finding stability.
With volatility remaining high, investors are closely monitoring macroeconomic developments and regulatory updates—including the upcoming White House Crypto Summit on Friday, which may provide further clarity on the U.S. government’s role in digital assets.
