Bitcoin News Today: Bitcoin Falls to Three-Week Low as CME Gap Filled Amid U.S. Trade Tariff Uncertainty

Bitcoin's price fell to a three-week low after filling a $114,000 gap in the CME Group’s Bitcoin futures market, amid heightened market anxiety triggered by U.S. trade tariffs. The drop to $114,322 on Bitstamp marked a significant technical development, as gaps left during weekend closures are often filled when trading resumes. Traders are now closely watching whether this event signals a temporary consolidation or a deeper correction [1].

The market reaction highlights how sensitive Bitcoin is to macroeconomic and geopolitical developments. While U.S. stocks, represented by the S&P 500, experienced a modest 0.4% decline, Bitcoin’s sharper fall underscores the crypto market’s vulnerability to trade policy uncertainties [2]. Analysts suggest that this divergence stems from the speculative nature of crypto assets compared to more established equity markets [3].

Market sentiment remains divided. Crypto investor Ted Pillows believes the gap fill sets the stage for a short-term rebound, while trader Cipher X warns that failure to reclaim $116,000 could lead to further declines toward $104,000. Similarly, Crypto Candy emphasized that a close above $115,000–$116,700 is crucial to avoid another dip toward $111,800. These levels serve as key technical indicators for both short-term traders and longer-term observers [4].

The broader market context adds complexity to Bitcoin’s outlook. The Trump administration’s reciprocal tariffs have added to economic uncertainty, yet markets appear to be adapting to trade war news, reducing its immediate volatility. The S&P 500 had previously hit record highs driven by strong tech sector earnings, despite hawkish comments from Federal Reserve Chair Jerome Powell and above-forecast inflation data from the Personal Consumption Expenditures index [5].

In summary, the filling of the $114,000 CME gap, combined with U.S. trade policy shifts, has intensified the crypto market’s volatility. While some traders anticipate a rebound, others caution about further downside risks. The next price action and volume dynamics will be key in determining whether Bitcoin stabilizes or enters a new correction phase [6].

Source:

[1] https://en.coinotag.com/bitcoin-faces-mixed-outlook-after-cme-gap-fill-amid-us-trade-tariff-impact/