Bitcoin Closes $107K CME Gap as Traders Eye Friday’s Crucial CPI Report

Volatility returns as Bitcoin stabilizes near $108,000 amid dollar strength, gold weakness, and mounting inflation concerns.

Bitcoin rebounded from $106,000 on Wednesday, successfully closing the Chicago Mercantile Exchange (CME) weekend futures gap — but the move failed to inspire much optimism among traders. The world’s largest cryptocurrency continues to face tight liquidity conditions and macroeconomic uncertainty as attention turns to Friday’s U.S. Consumer Price Index (CPI) data.

The BTC price hovered around $108,400 after the Wall Street open, tracking sideways while gold extended its steep decline from record highs. Analysts note that Bitcoin’s short-term bounce came largely as gold’s sell-off intensified, erasing part of its earlier safe-haven divergence.

“The only reason we pumped was due to gold dumping,” said crypto trader Roman, commenting on X. “I don’t think this move has any validity — Binance is hard selling everything.”

$BTC H4

Forget the sideways for a minute, we just straight dumped back down.

Again, the only reason we pumped was due to gold dumping. I don’t think this move has any validity & binance is hard selling everything.

Profit taking is happening. Don’t be fooled. https://t.co/1j7UjdSfmy pic.twitter.com/fwj2KTLpcv

— Roman (@Roman_Trading) October 21, 2025

Bitcoin Meets Resistance as Liquidity Tightens

Data from market analytics firm CoinGlass showed strong bid liquidity below $107,000, suggesting that buyers are defending the current range. However, new sell orders emerged immediately above spot levels, keeping prices trapped in a narrow corridor.

“This is a key area before retesting the Friday lows,” noted trader Daan Crypto Trades, adding that Bitcoin has now closed its latest CME gap — a technical target many traders watch for price alignment between spot and futures markets.

He described current conditions as “choppy, illiquid, and volatile price action,” emphasizing that traders remain cautious until fresh macro data clarifies direction.

Gold’s Slide and Dollar Strength Add Pressure

Meanwhile, gold continues to struggle, threatening to lose its critical $4,000 support level after a historic $2.5 trillion market cap wipeout earlier this week. The U.S. dollar index (DXY) has strengthened in response to risk aversion, compounding headwinds for both crypto and commodities, though the index eased slightly midweek.

CPI Data Could Set Next Market Trend

Friday’s CPI release is poised to become a defining moment for risk assets. With most government data still frozen due to the U.S. government shutdown, inflation figures will serve as the Federal Reserve’s sole guidepost for its upcoming policy decisions.

“All other releases will remain frozen until the shutdown ends. That makes CPI the singular anchor for next week’s policy rhetoric and market reaction,” QCP Capital wrote in a note to clients.

Analysts expect a softer CPI print near 0.2%, which could reignite the “soft-landing” trade and lift Bitcoin’s upside bias as liquidity expectations improve.

For now, Bitcoin’s technical picture remains mixed — with bulls defending key support levels but struggling to generate meaningful momentum. As QCP noted, any weakness in the dollar could quickly flip sentiment, turning the current range into a potential buy-the-dip opportunity for patient investors.

Bitcoin has closed its CME gap and stabilized above $107,000, but the market remains in wait-and-see mode. All eyes are now on Friday’s CPI data — a report that could determine whether Bitcoin’s next move is another leg down or the start of a renewed rally.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.