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"Everyone knows about CME gaps, but almost nobody knows why they happen, how often they get filled, what counts as a filled gap, or when this dynamic could disappear.
That’s why today we’re doing a deep dive into CME gaps, including how to spot them, how to trade them, and how exactly they’ve been impacting the crypto market. Enjoy! "
~ Coin Bureau
The video explains the phenomenon of CME gaps in Bitcoin futures, which occur because the Chicago Mercantile Exchange (CME) is closed on weekends while the spot crypto market trades continuously. When Bitcoin's price moves significantly over the weekend, a gap forms between the Friday closing and Sunday opening prices of the CME futures contract. Historically, 65% to 90% of these gaps eventually get "filled," meaning the spot price of Bitcoin moves back to the gap's level. This filling action is driven primarily by institutional trading strategies, such as the basis trade, which involves holding spot Bitcoin while shorting an equivalent amount on the CME. When a gap appears, these institutions must buy or sell on the spot market to re-align the spot price with the futures price for their trades to function, which in turn causes the price movement that fills the gap.
Looking ahead, the CME announced in October 2025 that it plans to offer 24/7 futures trading for crypto starting in early 2026, which is expected to eliminate these weekend gaps and reduce unwanted volatility in the crypto market, benefiting both retail and institutional investors. However, until this change is implemented, CME gaps continue to present a unique opportunity for patient traders who use low leverage, as the high probability of the gap being filled provides a clear and statistically reliable price target. The presenter concludes with a tutorial on how to personally trade these gaps by checking the BTC1! ticker on the 4-hour chart every Monday morning, and placing a small long or short position to anticipate the price returning to the gap's range.
0:00 What Is The CME?
4:35 When Do CME Gaps Happen?
7:50 Why Do CME Gaps Get Filled?
11:44 Will CME Gaps Stop Happening In 2026?
15:02 How To Trade CME Gaps
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=elmpN0itP0w
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
