Mass Liquidations Near $1B as Bitcoin Falls to $84K, Closing CME Futures Record Gap

Bitcoin Drops to $83.5K, Fills CME Futures Gap as Nearly $1B in Longs Get Wiped Out

Bitcoin (BTC) has retraced to $83,500, erasing much of Monday’s gains and fully closing a significant CME futures gap that had formed over the weekend. The price gap—created due to CME’s weekend closure while spot markets remained active—ranged from Friday’s close at $84,500 to Monday’s open at $95,300. Historically, these gaps have acted as price magnets, with BTC often revisiting them after rapid upward moves.

The pullback follows a sharp rally to $92,000, which was fueled by renewed institutional interest after President Trump’s announcement of a U.S. strategic crypto reserve. However, profit-taking, macroeconomic uncertainty, and a broader risk-off sentiment in financial markets have since triggered a reversal.

The sharp decline has resulted in the liquidation of over $900 million in leveraged long positions over the past 24 hours, according to Coinglass data. This brings the total three-day liquidation figure to more than $1.5 billion, as traders who bet on continued upside were forced out of their positions.

Mass liquidations tend to exacerbate price swings, as margin calls force traders to exit positions, leading to cascading sell-offs. Some analysts see this as a potential reset for overleveraged markets, while others caution that more downside could be ahead.

A new concern for traders is another unfilled CME gap below $80,000, dating back to early November when BTC surged past $81,000 following Trump’s reelection. If Bitcoin follows its historical trend, the market could see further downside as traders eye this level.

With traders now assessing whether BTC can stabilize or continue its decline, attention turns to key macroeconomic events and regulatory developments—including the upcoming White House Crypto Summit on Friday, which could provide more clarity on government involvement in digital assets.

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