Bitcoin’s recent sudden drop has sent ripples through the cryptocurrency market, impacting various tokens associated with gaming.
On Wednesday, Bitcoin (BTC), the leading cryptocurrency in terms of market capitalization, witnessed a swift decline of approximately 7%. This triggered a chain reaction, causing gaming tokens to lose between 5% and 15% of their value.
Data from CoinGecko reveals that in the aftermath of the Bitcoin crash, Immutable’s IMX token saw a decline of around 9%, while The Sandbox’s SAND token experienced a drop of about 12%.
Axie’s AXS token registered a roughly 10% decrease, and the GALA token took a significant plunge of approximately 13%.
Furthermore, Merit Circle’s BEAM token and ApeCoin witnessed declines of 9.5% and 13%, respectively.
Several other gaming tokens also incurred losses in the last 24 hours, including the GMT token from the “move-to-earn” game Stepn, Enjin Coin, Parallel’s PRIME token, and WAX.
It is important to highlight that these mentioned cryptocurrencies have seen cumulative decreases over the past week, with their losses intensifying in the wake of Bitcoin’s sudden crash that occurred early on Wednesday morning.
Over $500 in Longs Liquidated Along with Gaming Token Crash
According to reports, CoinGlass data reveals that the crash resulted in the liquidation of over $550 million in crypto long positions.
In precise figures, a total of 172,626 traders faced liquidation, with long liquidations amounting to $557 million and short liquidations reaching approximately $58 million.
Among the crypto exchanges, OKX led the liquidations, accounting for over $230 million, followed by Binance at $105 million and Huobi at around $74 million.
Bitcoin-tracked futures witnessed $110 million in both short and long liquidations in the past day, while Ethereum-linked futures recorded over $82 million in liquidations.
Despite the overall downturn, a few tokens managed to secure gains amidst the chaos.
Axie’s Smooth Love Potion (SLP) and Yield Guild Games’ YGG tokens displayed resilience, experiencing increases of approximately 4% and 11%, respectively, seemingly unaffected by Bitcoin’s decline.
Oasys also recorded a rise of about 6.3% in the past day, joining the select group of tokens that avoided the chilling effects of the flash crash.
While the present scenario poses challenges for some gaming tokens, it’s essential to recognize that certain tokens have recently achieved significant milestones. IMX reached a 20-month high of $2.35 last month, attaining prices not witnessed since the bullish market of April 2022.
GALA also observed an 18% gain during the same period, although its price has retreated to around $0.027, resembling levels seen in mid-December.
Bitcoin Drops to as Low as $40,000 on ETF Delay Rumors
The surge in liquidations occurred concurrently with the leading cryptocurrency plummeting to as low as $40,000, prompted by a report from Matrixport suggesting that the SEC is on track to reject spot Bitcoin ETF applications this month.
According to a post on X (formerly Twitter), Matrixport projected a January rejection for Bitcoin Spot ETFs by the SEC, advising traders to hedge their long exposure. The company stated, “With SEC Chair Gensler’s skepticism towards crypto, a potential -20% Bitcoin price drop is anticipated upon ETF denial, though a positive end-of-2024 outlook remains.”
