February 2 News, this week the Bitcoin derivatives market experienced intense volatility. The Chicago Mercantile Exchange (CME) Bitcoin futures opening price was nearly $6,800 lower than last week’s closing price, creating the second-largest gap in history. The futures opened around $77,730, while the previous trading day closed near $84,560, reflecting ongoing market pressure following a significant decline in January.
Spot Bitcoin is currently fluctuating above $77,000, digesting the sell-off from last week. In January, Bitcoin declined nearly 10% in total, ending the month at approximately $78,600, making it one of the weakest January performances in years. As prices rapidly retraced, trading volume in the futures market significantly increased, and leverage decreased, indicating traders are shifting toward more conservative positions.
Since CME is closed over the weekend, its futures prices often diverge from the spot market, which trades around the clock. When the market reopens at the start of a new week, sharp weekend volatility can create noticeable gaps. Historical experience shows that such gaps often influence short-term trends, with some funds paying attention to whether prices fill the gap back to the previous close, thereby amplifying volatility.
The Kobeissi Letter pointed out that the sharp decline in late January was mainly caused by liquidity contraction and excessive leverage, with forced liquidations exceeding $1.3 billion over two days. PlanB believes that the monthly RSI falling below 50 may indicate a longer-term correction cycle. However, Robert Kiyosaki stated on social media that he views the current retracement as a buying opportunity.
From a technical perspective, Bitcoin’s failure to hold the $80,000 to $82,000 range suggests the short-term structure remains weak. The $77,000 to $78,000 zone is a key support level; if broken, it could test below $70,000. To ease downward pressure, the price needs to regain the middle of the $80,000 range.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
A certain whale opened a 40x short position on BTC and stacked a 20x long position on crude oil, with both positions currently in a loss state.
BlockBeats News: On March 25th, according to Lookonchain monitoring, the whale that previously "sold 255 BTC to short" has opened a 40x short position of 1000 BTC (approximately $70.7 million) and a 20x long position of 202,155 xyz:BRENTOIL ($19.25 million). Both positions are currently in loss. The whale once had floating gains of $25.16 million, but is now facing floating losses of $33.39 million.
BlockBeatNews16m ago
Yesterday, the US Bitcoin spot ETF had net outflows of $66.71 million
Gate News, March 25: According to Trader T monitoring, on March 24, US Bitcoin spot ETFs experienced net outflows of $66.71 million. Specifically, BlackRock's IBIT had net outflows of $4.76 million, Fidelity's FBTC had net outflows of $45.35 million, and Bitwise's BITB had net outflows of $16.60 million.
GateNews23m ago
Metaplanet to Launch Shareholder-Exclusive BTC Cashback Payment Card with 1.6% Cashback Rate
Gate News, on March 25, Japan-listed Bitcoin treasury company Metaplanet announced that it will launch an exclusive cashback payment card for shareholders this summer. Cardholders will receive 1.6% cashback in Bitcoin for each transaction.
GateNews24m ago
An address on Hyperliquid established an 89.79 million dollar perpetual position, shorting BTC while going long on crude oil.
March 25 news: Analysts discovered that address 0x94d...33814 established a large contract position on the Hyperliquid platform with a total value of $89.79 million, becoming the largest BTC contract position address. The position includes 1,000 BTC short contracts at 40x leverage and 202,000 crude oil long contracts at 20x leverage.
GateNews44m ago
