Bitcoin price dropped to a three-week low by filling the $114,000 CME futures gap as US trade tariffs dampened market sentiment, with traders split on BTC’s next direction.
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Bitcoin filled a July CME futures gap near $114,000, marking a significant technical event.
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Trader opinions vary, with some expecting a rebound while others warn of further declines.
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US trade tariffs have a stronger negative effect on Bitcoin and crypto markets than on US stock indices.
Bitcoin price hits three-week low filling CME gap amid US tariffs; traders watch closely for next moves. Stay updated with COINOTAG crypto news.
How Did Bitcoin Fill the $114,000 CME Futures Gap?
Bitcoin’s recent price action filled the $114,000 gap in CME Group’s Bitcoin futures market, a common occurrence where weekend price gaps are closed within days or weeks. BTC/USD dropped to $114,322 on Bitstamp before bouncing, confirming the gap fill from July. This technical event often signals potential price reversals or consolidations.
What Are Traders Saying About BTC’s Next Move?
Market sentiment remains mixed. Crypto investor Ted Pillows anticipates an upward bounce following the gap fill, suggesting a recovery phase. Conversely, trader Cipher X warns that if BTC fails to reclaim $116,000, a drop to $104,000 could occur. Crypto Candy emphasizes the importance of closing above $115,000-$116,700 to avoid further dips, highlighting $111,800 as a possible support level before any new all-time highs.
BTC/USD 4-hour chart. Source: Cointelegraph/TradingView
Why Is Bitcoin More Affected by US Trade Tariffs Than Stocks?
Bitcoin’s price reacted more sharply than US stocks to the recent US trade tariffs, which were enacted as reciprocal measures by the Trump administration. While the S&P 500 futures dipped only 0.4%, Bitcoin experienced a steeper decline, reflecting heightened sensitivity to macroeconomic and geopolitical risks within the crypto market.
How Are Stock Markets Responding to Trade War Developments?
According to The Kobeissi Letter, markets have largely acclimated to trade war news since April, reducing volatility in stocks. The S&P 500’s modest reaction contrasts with Bitcoin’s sharper moves. Despite recent hawkish comments from Fed Chair Jerome Powell and above-estimate inflation data from the Personal Consumption Expenditures index, stocks remain relatively resilient, supported by strong tech earnings.
S&P 500 futures 1-day chart. Source: Cointelegraph/TradingView
US PCE data (screenshot). Source: Bureau of Economic Analysis
What Are the Key Technical Levels to Watch for Bitcoin?
Critical price levels include $116,000 as resistance and $104,000 as downside support. A failure to sustain above $115,000-$116,700 could lead to a retest of $111,800 before any potential rally to new all-time highs. Traders are closely monitoring daily closes and volume to gauge momentum.
How Does the CME Gap Influence Bitcoin Price Behavior?
CME futures gaps occur due to weekend market closures, creating price discrepancies that Bitcoin often “fills” when trading resumes. This behavior is widely observed and used by traders to anticipate short-term price movements. Filling the $114,000 gap signals a potential shift in market dynamics, but confirmation depends on subsequent price action.
Frequently Asked Questions
What is a CME futures gap and why does it matter for Bitcoin?
A CME futures gap is a price difference created when the futures market closes over weekends. Bitcoin often fills these gaps quickly, making them important indicators for traders to predict short-term price movements.
How do trade tariffs influence cryptocurrency markets?
Trade tariffs increase economic uncertainty, which can lead to increased volatility and price drops in cryptocurrency markets as investors react to potential global trade disruptions.
Key Takeaways
- Bitcoin filled the $114,000 CME futures gap, a key technical event signaling potential price shifts.
- US trade tariffs impacted Bitcoin more than stocks, reflecting crypto’s sensitivity to geopolitical risks.
- Trader opinions are divided, with critical price levels at $116,000 resistance and $104,000 support.
Conclusion
Bitcoin’s recent drop to fill the $114,000 CME futures gap amid US trade tariffs highlights the cryptocurrency’s heightened volatility compared to traditional stocks. While some traders anticipate a rebound, others caution about further declines. Monitoring key technical levels and macroeconomic developments remains essential for navigating BTC’s next moves. Stay informed with COINOTAG for expert analysis and updates.
Bitcoin (BTC) hit new three-week lows Friday as US trade tariffs soured market sentiment.
BTC/USD 4-hour chart. Source: Cointelegraph/TradingView
BTC price ticks off $114,000 CME gap
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling to $114,322 on Bitstamp before bouncing.
In doing so, the pair entirely filled a “gap” in CME Group’s Bitcoin futures markets left over from July.
As Cointelegraph continues to report, price tends to “fill” these gaps, which often appear at weekends, within weeks, days or even hours of the market reopening.
$BTC CME gap filled to the dollar.
Bounce time? pic.twitter.com/bhHy4NcFOZ
— Hardy (@Degen_Hardy) August 1, 2025
“We should see a nice upwards movement now,” crypto investor and entrepreneur Ted Pillows predicted in part of a response on X.
Some market participants remained cautious. Bitcoin, they argued, needed to show more strength to avoid the risk of a further breakdown.
“Now that the gap is tapped, we watch closely,” popular trader Cipher X told X followers, flagging $104,000 as a potential downside target if $116,000 was not reclaimed.
Popular trader Crypto Candy said the price needed Friday’s daily close to be above the $115,00-$116,700 area.
“If it fails to sustain, then we may see it at the 111.8k area before the next leg up to ATH,” he warned.
BTC/USDT 1-day chart. Source: Crypto Candy/X
Bitcoin suffers while stocks shrug off tariffs
Bitcoin thus fell harder than risk assets on the day as the Donald Trump administration enacted sweeping reciprocal tariffs.
By comparison, S&P 500 futures were down a modest 0.4% at the time of writing before the Wall Street open.
Commenting, trading resource The Kobeissi Letter saw the market already comfortable with trade war surprises, acclimatizing since April.
“The market says the trade war has lost all credibility,” it summarized, suggesting that S&P losses would have hit 3% had the tariffs gone ahead four months ago.
S&P 500 futures 1-day chart. Source: Cointelegraph/TradingView
Stocks nonetheless joined Bitcoin in whipsaw moves, the day prior having seen the S&P in all-time high territory thanks to tech earnings beating expectations.
This came despite the Personal Consumption Expenditures (PCE) index, known as the Federal Reserve’s “preferred” inflation gauge, coming in above estimates.
US PCE data (screenshot). Source: Bureau of Economic Analysis
Earlier in the week, Fed Chair Jerome Powell struck a hawkish tone while leaving interest rates unchanged, leading markets to price out rate cuts in 2025 — a headwind for risk assets.
