Bitcoin Futures Gap Down on CME Following Trump’s Tough Talk on China

Bitcoin Futures Slide as Trump Shuts Door on China Deal, Markets Brace for Prolonged Turmoil

Bitcoin futures on the Chicago Mercantile Exchange (CME) opened sharply lower on Monday, mirroring the global risk-off sentiment after President Donald Trump declared that a trade deal with China was off the table.

The April BTC contract started trading at $79,590 — a steep 5.6% drop from Friday’s close of $84,250 — before dipping further to $76,800. The gap-down open underscores growing unease among institutional traders, who often use CME to hedge or speculate on crypto in a regulated environment.

The sell-off coincided with a broader market downturn. Dow Jones futures plunged 900 points overnight, while Chinese stocks saw deep losses and Japanese equities triggered circuit breakers. Meanwhile, major financial institutions like JPMorgan and S&P Global revised their U.S. recession risk forecasts sharply higher.

Speaking to reporters on Air Force One, Trump doubled down on his protectionist stance. “Unless we fix the trade imbalance with China, there’s no deal,” he said. “This may be painful, but it’s the kind of medicine we need.” The comments came just days after his administration imposed sweeping new tariffs on 180 countries, escalating fears of a prolonged trade war and global slowdown.

Institutional Flows Reflect Caution

CME’s Bitcoin open interest — a proxy for institutional engagement — has slumped to 140.5K contracts, down from a December high of over 281K, according to Coinglass. The decline suggests risk appetite is waning among traditional finance players.

Conversely, open interest in crypto derivatives on non-CME platforms has jumped from 400K to over 520K BTC in recent weeks, hinting at a surge in short positioning as traders brace for further volatility.

Market watchers now see a potential inflection point for crypto. While declining CME interest could signal caution, the spike in global futures activity may also indicate traders are repositioning — potentially setting the stage for a sharp reversal if sentiment flips.

In the short term, though, traders are navigating uncharted waters, with geopolitics, macroeconomics, and digital assets more intertwined than ever.

About The Author

ctleditor

See author's posts