Bitcoin

BTC’s CME Gap in Spotlight as Price Sell-Off Puts Focus on Non-Traded Zone Below $80K

Published

4 weeks ago

February 27, 2025

Bitcoin (BTC) has dropped 10% to $86,300 this week, diving out of a prolonged period of trading between $90,000 and $110,000.

The so-called bearish range breakdown has traders closely examining charts for clues about where the sell-off may drive prices next. One of the key levels under scrutiny is the “runaway gap” in CME bitcoin futures below $80,000, which formed three months ago.

A gap is a blank space on a price chart between the closing or high price on a specific day and the next opening price, signifying that there was no trading activity at prices in between. When the gap appears in an established trend, it’s called a runaway or continuation gap.

Unlike bitcoin’s spot market, which is open 24/7, CME bitcoin futures trade 23 hours a day Sunday through Friday. The market opens at 5 p.m. CT (23:00 UTC) and closes for an hour’s maintenance the next day at 4 p.m.

As the bitcoin rally picked up steam following President Donald Trump’s Nov. 4 election victory, a runaway gap appeared in the CME futures on the following day. Prices opened the next day at $81,210, significantly above the election-day high of $77,930.

It’s widely held that price gaps are eventually filled, with traders buying and selling the asset in the previously non-traded zone. The process is often seen as a natural market behavior, reflecting a return to equilibrium.

“Historically, CME gaps are filled eventually, and it is usually hard to say when,” Nicolai Sondergaard, a research analyst at Nansen, said in a Telegram message. “The recent unexpected events are the larger reasons for why we have seen these big downwards movements and without them I think we wouldn’t really be looking at the CME gap.”

The risk indicators at Nansen have recently “gone risk-off,” so it wouldn’t be surprising if the CME gap is filled, Sondergaard said

Technical analysis theory, however, suggests otherwise. It says that common gaps, which often occur during regular trading, and exhaustion gaps, which appear during trend reversals, are typically filled quickly. In contrast, the likelihood of runaway gaps being filled is relatively low.

It’s worth noting that a gap has formed between Feb. 24 and Feb. 25 as prices dropped out of the prolonged consolidation. Which of these gaps will be filled first remains uncertain.

UPDATE (Feb. 27, 12:51 UTC): Adds dropped word in first bullet point.

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Bitcoin

BTC in Stasis Below $88K as Trump Suggests Bigger Tariffs on EU, Canada

Published

3 hours ago

March 27, 2025

admin

President Donald Trump has threatened bigger import tariffs against the European Union (EU) and Canada if they worked together “to do economic harm” to the U.S.

“If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!” Trump said in a late Wednesday night post on Truth Social.

Financial markets, however, remain steady in the wake of the new threat, with BTC in stasis below $88,000. Germany’s DAX futures fell 0.3% while their Wall Street counterparts traded flat to positive.

The resilience in the market likely stems from Federal Reserve Chairman Jerome Powell’s recent indication that the inflationary pressures resulting from tariffs could be transitory.

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Altcoins

‘Chart Is Still Broken’ – Crypto Analyst Predicts Sustained Downtrend for Altcoins Until This Takes Place

Published

7 hours ago

March 27, 2025

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A seasoned crypto trader is warning that the current bounce in the altcoin market will likely be short-lived.

Pseudonymous analyst The Flow Horse tells his 266,500 followers on the social media platform X that he thinks crypto is still bearish and the latest rally will probably lead to another leg down.

According to the analyst, the current bounce has not changed the bearish market structure of crypto.

“Bearish still on the high time frame until proven otherwise.

I can’t see any reason why this isn’t a relief rally and markets won’t continue to suck the next few months.

Chart is still broken.”

Elaborating on his bearish stance on crypto, the trader says on the instant messaging platform Telegram that the downtrend will likely persist unless Bitcoin (BTC) flips a key price area into support.

“I think we are at the part where the correction can be, as I said the other day, one that is more through time than through price.

I will be looking at how FARTCOIN, HYPE, PEPE, ENA and BERA continue to trade.

Being that it is a Bitcoin dominance macro trend, there is no reason to assume that changes, and any success in alts is going to come down to if BTC can turn this $90,000-$93,000 level into support.”

At time of writing, Bitcoin is trading for $87,813.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Bitcoin

GameStop Announces $1.3 Billion Fundraising Plan To Purchase Bitcoin

Published

7 hours ago

March 27, 2025

admin

GameStop Corp. (NYSE: GME) announced today that it intends to raise $1.3 billion through a private offering of convertible senior notes and will use the net proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin. The move comes a day after the company revealed an update to its investment policy, allowing Bitcoin to be used as a treasury reserve asset.

The offering consists of $1.3 billion aggregate principal amount of 0.00% Convertible Senior Notes due in 2030. Additionally, the company plans to grant initial purchasers an option to buy up to $200 million more in notes within a 13-day period from the first issuance date. The notes will be general unsecured obligations and will not bear regular interest or accrete in value. They will mature on April 1, 2030, unless converted, redeemed, or repurchased earlier.

Upon conversion, GameStop will have the option to settle in cash, shares of its Class A common stock, or a combination of both. The initial conversion rate and other terms will be determined at the time of pricing. The company stated that it expects to use the U.S. composite volume-weighted average price of its stock from 1:00 p.m. to 4:00 p.m. Eastern Daylight Time on the pricing date as the reference for the initial conversion price.

GameStop emphasized that neither the notes nor any shares of common stock issuable upon conversion have been or will be registered under the Securities Act of 1933 or any state securities laws. As a result, they may not be offered or sold in the United States without registration or an applicable exemption. The company also stated that there are no assurances that the offering will be completed as described or at all.

This marks a significant financial decision for GameStop as it pivots toward integrating Bitcoin into its corporate strategy. A strategy pioneered by Strategy’s Michael Saylor, who met with GameStop’s CEO Ryan Cohen in person last month, and has definitely appeared to have had an influence on the GameStop’s decision to embrace BTC as a reserve asset.

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