Bitcoin's $84K Plunge: $1B in Bullish Bets Liquidated
1min read Bitcoin's price plummeted to $84,000 on Tuesday, filling a significant gap in its CME futures and leading to the liquidation of nearly $1 billion in bullish bets. This move comes a day after the cryptocurrency surged to an all-time high of $92,000, fueled by renewed institutional interest following U.S. President Donald Trump's announcement of plans for a strategic crypto reserve.
The rally left a substantial gap in the CME Bitcoin futures chart between Friday's close at $84,500 and Monday's open at $95,300. This gap was fully filled by Asian afternoon hours on Tuesday, with BTC retracing to $83,500. Historically, CME gaps have acted as magnets for bitcoin prices, with most gaps eventually filling, often signaling a correction after sharp moves.
Tuesday's price action resulted in over $900 million in bullish bets on crypto-tracked futures being wiped out in the past 24 hours, bringing three-day losses to over $1.5 billion. Nearly $400 million in bets on higher bitcoin prices were liquidated in the past 24 hours, with most originating in late U.S. and early Asian hours as BTC prices reversed from Monday's rally. Liquidations occur when an exchange forcefully closes a trader's leveraged position due to a partial or total loss of the trader's initial margin.
While the gap has been filled and a large liquidation has occurred, there may not be reason to cheer just yet. A bearish range breakdown has put another gap in CME bitcoin futures below $80,000 under scrutiny, one which formed three months ago. This gap appeared in the CME futures after Trump was first elected president in early November, with prices opening above $81,000.
