Gaming tokens take hit from Bitcoin’s dip to $40k

The cryptocurrency market recently experienced a downturn, with significant declines in gaming tokens as Bitcoin’s value approached $40,000.

The cryptocurrency market declined on Monday, notably impacting gaming tokens. As Bitcoin (BTC) approached the $40,000 mark, gaming tokens experienced larger drops, according to CoinGecko.

Immutable’s IMX token decreased by 8% to $1.80, as Beam (BEAM) and Gala Games (GALA) saw around a 7% decline. Axie Infinity’s AXS governance token fell over 6%, and its in-game SLP reward token dropped by 7%. The only token not experiencing a dip is Ronin (RON), which has increased by 34% in the past week, reaching a price of $2.32, and is now among the top 100 cryptocurrencies. It peaked at $2.52 on Sunday, marking its highest value since February 2022.

These market movements within gaming tokens reflect broader trends in the cryptocurrency sector. A recent CoinShares report indicates a modest outflow from digital asset investment products, totaling $21 million last week. Concurrently, Bitcoin trading volumes surged to $11.8 billion, seven times the average weekly volume observed in 2023.

Such significant trading volumes in Bitcoin influence the wider cryptocurrency market, including gaming tokens. Additionally, investment patterns are shifting geographically. The United States recorded capital inflows of $263 million, whereas Canada and Europe experienced combined outflows of $297 million.