Flash Crash Sends Gaming Tokens Plummeting
The cryptocurrency market experienced a jolt recently when Bitcoin, the leading cryptocurrency, underwent a sudden drop of nearly 7%. This flash crash had a ripple effect throughout the entire cryptocurrency landscape, particularly impacting gaming-related tokens. As a result, various gaming tokens saw a significant decrease in value, ranging from 5% to 15%.
Significant Declines in Gaming Tokens Post-Bitcoin Crash
Following the Bitcoin crash, gaming tokens faced notable declines. Immutable’s IMX token witnessed a dip of approximately 9%, while The Sandbox’s SAND token plummeted by about 12%. Axie’s AXS token also experienced a decrease of roughly 10%, and GALA’s token took a staggering plunge of around 13%. Other tokens, such as Merit Circle’s BEAM token and ApeCoin, saw declines of 9.5% and 13% respectively. These losses exacerbated the downward trend these cryptocurrencies had already been experiencing over the past week.
Massive Liquidations Amidst Bitcoin’s Tumble
The flash crash triggered a wave of liquidations that surpassed $500 million. A whopping 172,626 traders were affected by these liquidations, resulting in total long liquidations at $557 million and short liquidations at approximately $58 million. OKX led the pack in terms of liquidations, with over $230 million recorded. Binance followed with $105 million, and Huobi saw around $74 million in liquidations. Futures tied to Bitcoin and Ethereum experienced significant liquidation as well, with $110 million and over $82 million respectively.
Tokens Defy Trend as Bitcoin Drops, But Challenges Persist
Despite the overall decline in gaming tokens, a few tokens managed to defy the trend. Axie’s Smooth Love Potion (SLP) and Yield Guild Games’ YGG tokens recorded increases of about 4% and 11% respectively. Oasys also saw a rise of roughly 6.3%. These tokens stood out amidst the impact of the flash crash, providing some respite for investors. However, challenges persist for gaming tokens, as they continue to navigate the volatile cryptocurrency market.
Speculations Surround Bitcoin’s Drop to $40,000 Amidst ETF Rumors
The drop in Bitcoin’s price to as low as $40,000 coincided with rumors suggesting that the Securities and Exchange Commission (SEC) might reject spot Bitcoin exchange-traded fund (ETF) applications this month. The anticipation of a negative decision by the SEC has fueled speculation that Bitcoin prices could potentially drop by 20%. However, some remain optimistic, citing SEC Chair Gary Gensler’s cautious stance towards cryptocurrencies. Despite the current challenges, a positive outlook for the end of 2024 remains for Bitcoin and the overall cryptocurrency market.
Analyst comment
Negative news: The flash crash in the cryptocurrency market led to significant declines in gaming tokens, ranging from 5% to 15%. Liquidations surpassed $500 million, impacting over 172,000 traders. Although a few tokens defied the trend, challenges persist for gaming tokens in the volatile market. Speculations surround Bitcoin’s drop to $40,000 amidst rumors of the SEC rejecting Bitcoin ETF applications.
