Bitcoin’s Price Crash Rocks Gaming Token Market

John Darbie
Photo: Finoracle.me

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.

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John Darbie is a seasoned cryptocurrency analyst and writer with over 10 years of experience in the blockchain and digital assets industry. A graduate of MIT with a degree in Computer Science and Engineering, John specializes in blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). His insights have been featured in leading publications such as CoinDesk, CryptoSlate, and Bitcoin Magazine. John’s articles are renowned for their thorough research, clear explanations, and practical insights, making them a reliable source of information for readers interested in cryptocurrency. He actively follows industry trends and developments, regularly participating in blockchain conferences and webinars. With a strong reputation for expertise, authoritativeness, and trustworthiness, John Darbie continues to provide high-quality content that helps individuals and businesses navigate the evolving world of digital assets.