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Cryptocurrencies: 12,885
Markets: 942
Marketcap: $ 2.10 T(0.32%)
24h Vol: $ 59.98 B
BTC Dominance: 48.13%

Crypto Market Decline Wipes Out Over $550 Million From Gaming-Token Holders

A rapid 7% decline in Bitcoin (BTC) on Wednesday triggered a domino effect that negatively impacted gaming-related cryptocurrencies and tokens.

Key Takeaways

  • Bitcoin fell by around 7%, causing value drops between 5% to 15% for gaming tokens.
  • Over $550 million in crypto long positions were liquidated, affecting 172,626 traders.
  • Despite the downturn, some tokens including SLP, YGG and Oasys saw gains.
  • Bitcoin’s drop to as low as $40,000 was attributed to rumors that the SEC may reject Bitcoin spot ETF applications.

According to data from CoinGecko, Immutable’s IMX token decreased nearly 9% while The Sandbox’s SAND token slipped roughly 12%. Axie Infinity’s AXS token declined approximately 10% and GALA plunged some 13%.

Other affected tokens included GMT from Stepn, Enjin Coin, PRIME from Parallel, and WAX. The downtrend follows a general market decline over the previous week.

Over $550 Million in Liquidations

CoinGlass data revealed that more than $550 million worth of crypto long positions were liquidated, affecting a total of 172,626 traders. Major liquidations occurred on OKX ($230 million), Binance ($105 million), and Huobi ($74 million).

Bitcoin-tracked and Ethereum-linked futures saw $110 million and $82 million in liquidations respectively.

Gains for Some Tokens

Despite the market slump, some tokens saw gains including Axie Infinity’s Smooth Love Potion (SLP) token which increased by around 4%. Yield Guild Games’ YGG token rose approximately 11% while Oasys climbed some 6.3%.

IMX saw a significant rise to a 20-month high of $2.35 last month while GALA gained 18% recently though it has since fallen to around $0.027.

Bitcoin’s drop to as low as $40,000 was attributed to rumors that the SEC may reject applications for spot Bitcoin ETFs. Matrixport suggests a potential 20% Bitcoin price drop if the ETFs are denied but maintains a positive outlook for late 2024.

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