As Large CME Futures Gap Filled, BTC Spot Markets Rebound And Bitcoin Price Drops 17%

Market Cap Of Bitcoin And Other Coins

A few minutes after 5 a.m. (EST), on January 4, 2020, the price of bitcoin slid to the lowest point of the year dropping from Sunday’s high of $33,800 per unit to $27,734. After the regulated exchange has seen six consecutive gaps since the run-up, in fact, the price dip filled CME Group’s large futures gap. They did not drop as much as the leading crypto asset meanwhile as a number of other cryptocurrencies have seen significant gains. 

Losing a total of 17.94% from 1:30 a.m. to 5:15 a.m. (EST) as the bitcoin process took a hit on Monday. As on Sunday, around $33,800 per unit was the bitcoin’s daily high and by 5:15 in the morning the next day, it was found to have dropped to a 2021 low at $27,734 per coin. Jumping back above the $32k region, since then the price has rebounded by 15.38%. Now however having filled one of CME Group’s large bitcoin futures gaps is coincidentally the drop. 

Before rebounding on Monday, January 4, 2020, bitcoin slid to $27,734. 
That CME’s 6th consecutive gap had formed for instance as yesterday the bitcoin trader since 2013 dubbed Lowstrife told his 21,000 Twitter followers. Lowstrife then tweeted that for the CME bitcoin futures, this is the 6th consecutive gap. Adding to it he then said, as 4 of these were large(>6%) gaps, 2 of them have been small. 

What Are Traders Seeing In The Crypto World?

Thereby in case the price of bitcoin then spikes or drops significantly, just after the last price call on Friday throughout the weekend, the traders may then see a gap where the futures market had stopped as trading gaps form because CME Group is a regulated market that only operates Monday through Friday. That formed between $23,790 to $26,525, the reports had on a very large CME bitcoin futures gap. Ever recorded it was one of the largest CME bitcoin futures gaps. Making CME temporarily stop trading, this misaligned trading discrepancies between spot prices and futures market prices.

Between spot prices and futures market prices, future gaps happen often and there are quite a few on the BTC/USD chart. Never getting filled, the gaps may remain for long periods of time. In the sense that they show some bottom indicators prior to the actual spot market price bottom, however, traders do think gaps are meaningful. Remains unfilled is the large gap that was reported last week  

Here Is What Michael Hall Has To Say About The Dip In Bitcoin Price? 

He stressed this morning that the long-term perspective is still quite solid as Michael Hall, co-founder, and CIO of Nickel Digital is not stressed by the recent dip. Hall then explained most notably around Thanksgiving due to the inelastic supply of bitcoin it can suffer from upside volatility in thin markets giving rise to spikes that resolve quickly whereas usually, it is at higher levels than it has happened several times just in recent months. Adding to this the Nickel Digital executive said: 

The recent wave of institutional engagement supports this as they see no reason to change their constructive long-term view on bitcoin. Thereafter bitcoin exposures should then be carefully managed to a low single-digit percentage just in multi-asset portfolios, where they have always been clear. 

A number of other coins saw losses but not nearly as deep as BTC moreover while bitcoin shed some dollars during the early morning trading sessions. Trading for $1,044 per unit, Ethereum is back up above 14% today. Currently swapping over the $410 price handle, bitcoin cash jumped over 5%. Finally, when observed, each ADA is now trading for $0.21 per unit also at the time of publication, as Cardano is up over 9%. Still hovering at around $841 billion on Monday is the entire market capitalization of all 7.500+ crypto-assets in existence. 

The Final Thoughts On The Discussion 
The crypto world in the new year is viewing a dip in their prices. Discussed here are the various reasons for this along with the prices of other coins too. So, what do we observe here? It is just a phase wherein the prices are likely to bounce back with even more energy and a greater market cap. Finally, when you are observing all that has to be understood, bitcoin prices are surely on a verge of a low market cap. 

With the help of industry giants, we hope the crypto assets including bitcoin will raise more and touch new all-time highs. So as of now even though the scene is bleak, the future still holds promise. Until then it’s a goodbye from us.