Crypto Stocks Soar… But Wait! A Gap in the CME!

by

Ah, the markets, where fortunes are made and lost with the grace of a drunk penguin 🐧.

What to know:

  • Crypto and AI-linked equities are rallying like a drunken parrot on a unicycle 🦜🚀, as bullish sentiment builds across digital assets, as odds rise that a U.S. government shutdown will finish in days. 🚨
  • Despite the momentum, a CME futures gap around $104,170 could pull bitcoin lower before the next leg higher. But fear not! It’s just the market’s way of saying, “You think you’re smart? Try this!” 🧙‍♂️📉

According to Velo data, Mondays have averaged negative returns over the past month. However, this Monday started in the green as bitcoin climbed above $106,000, reclaiming a key technical level the 365-day moving average, which has acted as an important long-term support throughout this cycle. That moving average currently sits near $102,444. But let’s not get too excited-this is the market, where hope is a currency and reality is a foreign language. 🤷‍♂️

However, a small Chicago Mercantile Exchange (CME) gap has formed around $104,170 from weekend trading. A CME gap occurs when bitcoin’s price on CME futures opens higher or lower than where it closed the previous session, typically over the weekend when CME markets are closed. It’s like a magical portal that only opens on weekends, and the price just waltzed through it. 🕰️🌀

Historically, these gaps often get “filled” as price action revisits those levels, suggesting a short-term downside target, though the broader narrative has shifted bullish amid expectations that the U.S. government shutdown could end as early as this week. The market is holding its breath, waiting for the U.S. government shutdown to end like a poorly written comedy. 🎭

As a result of bitcoin’s rally on Monday, crypto-related equities jumped in pre-market trading. AI-linked crypto stocks are leading the gains, as if they’ve all joined a very enthusiastic dance party. 🕺

Galaxy Digital (GLXY) is up 5% to $33, IREN (IREN) has climbed 7% to $66 and Cipher Mining (CIFR) is trading around $21, up 5%. It’s like the stock market is having a very good day, and everyone’s wearing party hats. 🎉

Meanwhile, pure bitcoin treasury plays are also seeing strength. Strategy (MSTR) is up 3% pre-market at $248, while Metaplanet (3350) closed Monday’s session 3% higher at 427 yen. The market is like a toddler with a sugar rush, bouncing from one thing to another. 🍬

Elsewhere in the market, gold has jumped 2% to $4,079, and silver is approaching the $50 mark, up 3.3%. The U.S. dollar index (DXY) continues to hover near the 100 benchmark, while U.S. 10-year Treasury yields have edged back above 4.1%. It’s like the entire financial world is playing a game of musical chairs, and no one knows who’s going to be left standing. 🪑

Read More

2025-11-10 14:09