Bitcoin CME Gap Created at $117,000, Here’s What This Means for Altcoins

The Bitcoin (BTC) price has witnessed sideways movements over the past few days. The recent BTC price drop has led to the creation of a CME gap of around $117,000, according to market analyst and OKX partner Ted.

While the gap signals more price declines for BTC, it suggests potential rallies for altcoins like Ethereum (ETH) and XRP.

The Bitcoin CME Gap and Implications for Altcoins

According to Ted, BTC has a gap on the Chicago Mercantile Exchange (CME), around $117,000.

The analyst claims Bitcoin will continue on its sideways movement until Monday, August 25, 2025. Once the US market opens on Monday, Ted believes BTC will fill the CME gap, followed by a possible rally.

Analysts and traders closely monitor the CME gap as it offers valuable insights into potential price movements.

Essentially, these gaps are formed when disparities arise between Bitcoin’s closing and opening prices on the Chicago Mercantile Exchange.

As noted by Ted, the analyst expects the BTC price trend to continue its decline this weekend. In contrast, Ted thinks altcoins will continue to extend their rally.

His sentiments are likely based on historical trends where capital rotates from BTC into altcoins during consolidation phases.

Bitcoin surged above $116,000 on Friday after Federal Reserve Chair Jerome Powell raised expectations of a September rate cut at the Jackson Hole Symposium.

However, the BTC price has retraced slightly, currently trading at $114,755. This suggests consolidation as traders assess whether BTC will break into new highs or pull back to fill the CME gap.

Unlike Bitcoin, Ethereum, and other altcoins like Solana (SOL) and XRP have shown reversal signals.

In the past 24 hours, ETH price has rallied 2.2% to $4,740, while SOL climbed over 4.4% to $202.9.

Similarly, XRP price surged slightly by 0.4% to $3.01, suggesting momentum in the altcoin market, as Ted predicted.

Matrixport Shift Capital from ETH to BTC

Amid the shifting market dynamics, digital asset financial services platform Matrixport was spotted exchanging Ethereum for Bitcoin.

Onchain data analytics provider Lookonchain brought the attention of the market to the Matrixport trade.

According to Lookonchain data, multiple wallets linked to Matrixport deposited 95,873 ETH, worth about $452 million, into Binance and OKX exchanges in an earlier trade.

Only a few hours later, the Matrixport-linked wallets withdrew 2,354.6 BTC from Binance and OKX.

Lookonchain noted that the trade pattern suggests Matrixport is selling ETH for BTC, as it awaits a potential price breakout.

However, some analysts suggest the movement could reflect portfolio reallocation, liquidity provision, or other institutional strategies.

Is Bitcoin ATH Looming?

While the details about the Matrixport trade remained limited, their action suggests expectations of an incoming BTC rally.

Bitcoin price reached an all-time high of $124,171 on August 14, 2025, according to CoinMarketCap data.

However, the leading coin has since pulled back, largely driven by economic data and market sentiments.

Currently, the market shows mixed signals, with Bitcoin holding key support at the $117,000 levels. Meanwhile, indicators suggest cautious optimism.

Specifically, the Relative Strength Index (RSI) is at 49.9, indicating cooled momentum but with signs that buyers are returning gradually.

In the short term, factors like inflows into the spot ETFs could push Bitcoin to surpass its ATH of $124,171.

The spot Bitcoin exchange-traded funds (ETFs) have seen consistent outflows over the past few days. Hence, if momentum returns, it could ignite a breakout in the price of BTC.

Inflows into Bitcoin ETFs reflect growing institutional confidence, which has historically driven price surges.