Why do CME gaps occur in the world of cryptocurrencies?

7 answers

• Kauan Gomes FernandesJun 08, 2023 · 2 years ago
  CME gaps occur in the world of cryptocurrencies due to the difference in trading hours between the traditional financial markets and the cryptocurrency markets. The Chicago Mercantile Exchange (CME) operates on a fixed schedule, while cryptocurrencies trade 24/7. This difference in trading hours can lead to gaps in the price chart when the CME market opens after a weekend or holiday, causing a mismatch between the closing price on Friday and the opening price on Monday. These gaps are often filled as the market adjusts to the new trading week.
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• KosmoSep 25, 2024 · 10 months ago
  CME gaps in the world of cryptocurrencies happen because traders and investors react to news and events even when the market is closed. If there is significant news or a major event during the weekend or holiday, it can cause a sudden change in market sentiment. When the CME market opens, the price may gap up or down to reflect the new information. This is why CME gaps are more common in volatile markets like cryptocurrencies.
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• Sharad ShresthaJul 11, 2020 · 5 years ago
  CME gaps occur in the world of cryptocurrencies because of the influence of institutional investors. Institutions often use the CME futures market to hedge their positions or speculate on the price of cryptocurrencies. When the CME market opens, these institutional players can cause significant price movements, leading to gaps in the price chart. This is why monitoring CME gaps can provide insights into the sentiment and direction of the market.
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• RAUL-GABRIEL STOIAMar 04, 2023 · 2 years ago
  CME gaps are a natural occurrence in the world of cryptocurrencies. They represent the market's reaction to new information and the continuous nature of trading in the cryptocurrency space. While CME gaps can be seen as a temporary imbalance, they often get filled as the market participants adjust their positions. Traders and investors can use CME gaps as a tool to identify potential trading opportunities and gauge market sentiment.
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• Abdo ManDec 06, 2021 · 4 years ago
  CME gaps are a phenomenon that occurs in the world of cryptocurrencies due to the unique characteristics of this market. Unlike traditional financial markets, cryptocurrencies are decentralized and traded globally without a central exchange. This decentralized nature can lead to discrepancies in price between different exchanges, creating gaps in the CME market when it opens. These gaps are a reflection of the market's inefficiencies and can present opportunities for arbitrage and profit.
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• Fuglsang MallingSep 08, 2022 · 3 years ago
  CME gaps occur in the world of cryptocurrencies because of the influence of market manipulation. Cryptocurrency markets are known for their susceptibility to manipulation, and CME gaps can be a result of coordinated efforts to create artificial price gaps. Traders with large positions can manipulate the market during low liquidity periods, causing gaps in the price chart. It is important for traders to be aware of these potential manipulations and exercise caution when trading around CME gap areas.
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• alexfrnnAug 03, 2024 · a year ago
  CME gaps in the world of cryptocurrencies are a result of the market's speculative nature. Cryptocurrencies are highly volatile and driven by investor sentiment. When the market is closed, traders and investors continue to speculate on the future price movements of cryptocurrencies. When the CME market opens, these speculations can lead to significant price gaps as traders rush to adjust their positions based on their overnight analysis. This is why CME gaps are often seen as an opportunity for short-term traders to profit from the market's volatility.
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