Are CME Gaps Guaranteed to Fill? Bitcoin’s $60k Drop Suggests Otherwise

While Bitcoin trades continuously, CME futures operate differently, leading to gaps. Recent events challenge the notion that these gaps must always fill.

Bitcoin is traded 24/7, yet CME Bitcoin futures close for the weekend. This discrepancy creates what is known as a CME gap, which often emerges during tumultuous market periods. A CME gap represents the gap on a futures chart that appears between the last trading price on Friday and the opening price on Sunday evening.

The presence of these gaps has led many to speculate whether they are always filled, a belief that has been scrutinized following Bitcoin's recent price movements. Notably, Bitcoin recently experienced a significant drop to $60,000, which raises questions about the inevitability of these gaps being closed.

As market dynamics evolve, the traditional view that all CME gaps must be filled is being challenged, particularly with Bitcoin’s volatile behavior. Observers are now reconsidering whether the historical trend of gap closures will hold true in the face of unprecedented market conditions.