Bitcoin Retreats from Recent Peaks as Traders Eye CME Gap and DeFi Hack Aftermath

The cryptocurrency market has returned to familiar territory after a brief spike to its highest level since early February on Friday. Bitcoin is currently trading just below $75,000, while ether has dropped to $2,300, both down significantly from Friday's highs of $78,300 and $2,460. Traders are watching the bitcoin futures market on the CME, which closed at $77,540 on Friday and opened at $74,600, creating a 'CME gap' of 3.8% to the upside. This gap may be filled, as a similar occurrence last week was resolved by the end of the day on Monday. Despite a volatile weekend, Bitcoin has gained 1.5% since midnight UTC, indicating improving sentiment. The market downturn over the weekend was exacerbated by the closure of the Strait of Hormuz, leading to a surge in crude oil prices from $78 to $88 per barrel, which in turn weighed on risk assets, with the Nasdaq 100 and S&P 500 futures both down 0.59% since midnight.