Bitcoin (BTC) futures gap up to $87,800 opens the door for a retracement

As spot Bitcoin (BTC) pushed higher over the weekend reaching a high of $87,800 on Monday, another gap emerged between CME futures' closing price on Friday and the start of the new week's trading.

Bitcoin (BTC) slipped on Monday, extending declines from the previous session as traders assessed the outlook for U.S. monetary policy and a crypto bill that stalled in the House of Representatives.

Bitcoin dropped as low as $84,000, and was last down 1.8% at $84,364. A rise to a high of $87,800 on Monday also brought the cryptocurrency within striking distance of the all-time peak of $89,000 hit in November 2021.

The cryptocurrency had slid on Sunday after a bill to regulate the crypto industry stalled in the House of Representatives, pouring cold water on optimism that clear rules for the sector were in sight.

The setback for the bill, which would have created a framework for registering crypto tokens and set up a system for handling bankruptcies in the industry, came after the Senate passed a bipartisan bill to regulate stablecoins.

The legislation, which still needs to be approved by the full House, would give the administration sweeping powers to seize the assets of any person or company involved in, or accused of, evading sanctions or other legal obligations.

A report by the Financial Stability Board, a global body that advises the Group of Seven (G7) on economic and financial stability, also warned on Monday that crypto firms were not integrating well with the broader financial system.

The report, commissioned by the G7 in February, also said that while bitcoin and other cryptocurrencies had not yet posed a threat to financial stability, they could do so if they grew rapidly and large-scale price dislocations occurred.