Bitcoin’s Flash Crash Sends Shockwaves By Gaming Token Market

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Bitcoin's Flash Crash Sends Shockwaves Through Gaming Token MarketBitcoin's Flash Crash Sends Shockwaves Through Gaming Token Market
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Bitcoin’s current flash crash has despatched shockwaves throughout the cryptocurrency market, impacting numerous gaming-related tokens. 

On Wednesday, Bitcoin (BTC), the most important cryptocurrency by market capitalization, skilled a fast decline of roughly 7%, prompting a domino impact that noticed gaming tokens shedding wherever from 5% to fifteen% of their worth.

In response to knowledge from CoinGecko, following the Bitcoin crash, Immutable’s IMX token suffered a decline of round 9%, whereas The Sandbox’s SAND token dropped by about 12%. 

Axie’s AXS token skilled a roughly 10% lower, and the GALA token took a major plunge of roughly 13%. 

Moreover, Advantage Circle’s BEAM token and ApeCoin fell by 9.5% and 13%, respectively.

Quite a few different gaming tokens additionally confronted losses throughout the previous day, together with the GMT token from the “move-to-earn” sport Stepn, Enjin Coin, Parallel’s PRIME token, and WAX.

It’s price noting that these aforementioned cryptocurrencies have skilled general declines over the previous week, with their losses exacerbating following Bitcoin’s flash crash that occurred early on Wednesday morning. 

Over $500 in Longs Liquidated Together with Gaming Token Crash

As reported, CoinGlass knowledge signifies that the crash led to the liquidation of over $550 million in crypto lengthy positions.

Extra particularly, 172,626 merchants had been liquidated, with the full lengthy liquidations coming in at $557 million and quick liquidations coming in at round $58 million.

Crypto change OKX took the lion’s share of those liquidations at over $230 million, adopted by Binance at $105 million and Huobi at round $74 million. 

Bitcoin-tracked futures skilled $110 million in each quick and lengthy liquidations over the previous day whereas Ethererum-linked futures noticed over $82 million in liquidations. 

Regardless of the final downturn, just a few tokens managed to make positive factors amidst the chaos. 

Axie’s Easy Love Potion (SLP) and Yield Guild Video games’ YGG tokens noticed will increase of roughly 4% and 11% respectively, seemingly unfazed by Bitcoin’s tumble. 

Oasys additionally skilled an increase of about 6.3% throughout the previous day, becoming a member of the restricted group of tokens that escaped the chilling results of the flash crash.

Whereas the present scenario could seem difficult for lagging gaming tokens, it is very important be aware that a few of them have not too long ago achieved notable milestones. 

IMX reached a 20-month excessive of $2.35 final month, reaching costs not seen because the bullish market of April 2022. 

GALA additionally witnessed an 18% acquire throughout the identical interval, though its value has since dropped again to round $0.027, much like mid-December ranges.

Bitcoin Drops to as Low as $40,000 on ETF Delay Rumors

The report degree of liquidations got here because the main cryptocurrency crashed to as little as $40,000 after a report from Matrixport claimed the SEC is poised to reject spot Bitcoin ETF functions this month. 

“Matrix on Goal tasks a January rejection for Bitcoin Spot ETFs by the SEC, cautioning merchants to hedge lengthy publicity,” the corporate wrote in a current put up on X (previously Twitter). 

“With SEC Chair Gensler’s skepticism in direction of crypto, a possible -20% Bitcoin value drop is anticipated upon ETF denial, although a constructive end-of-2024 outlook stays.”

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