Key Insights:
- Hyperliquid price in free fall after Arthur Hayes, one of its most bullish proponents, offloads his holdings.
- Hayes explains the reasons for closing his HYPE positions.
Hyperliquid price is back in the spotlight, and this time not for the same reasons as last week. The HYPE crypto has previously garnered attention for demonstrating bullish resilience amid heavy sell pressure across most top coins in the last few days.
Hyperliquid price may be losing its bullish footing, as per the latest observations. The cryptocurrency fell from as high as $75.5 to as $66.7 in the last 24 hours.
This Hyperliquid price decline occurred after it previously faced resistance above $75 in the last 4 days. The cryptocurrency has maintained a solid rally since mid-May.
It was also worth noting that HYPE crypto was already oversold before the resurgence of sell pressure. This means profit-taking after the recent rally could be one of the forces driving the sell pressure.
Moreover, holders might be offloading their coins amid the recent wave of bearish activity. However, one component stood out among the reasons for the sell pressure over the last 24 hours, and it has to do with Arthur Hayes.
Arthur Hayes Sells His HYPE Crypto Holdings Despite Previous Strong Sentiments
BitMex co-founder Arthur Hayes has earned a reputation as one of the biggest Hyperliquid evangelists. He previously held strong views on HYPE crypto, even betting that it would outperform most of the top 10 coins.
Interestingly, Arthur Hayes may have played a big role in the Hyperliquid price decline in the last 24 hours. This is because Hayes reportedly sold 247,334 HYPE coins valued at roughly $18 million.
Arthur Hayes confirmed on his X account that he sold off his entire HYPE crypto holdings. He also stated that he would release an essay explaining the reasons why he decided to close his HYPE crypto and NEAR positions.
Based on his explanation, Hayes hinted that macro factors, such as the Iran-US conflict, could push the market sentiment into a bearish stance. Mega AI IPOs may also trigger liquidity migration.
Hayes’ decision to sell the coins does not necessarily mean he will not hold HYPE crypto in the future. He noted that he was securing profits but also expects market highs between June and September.
Hyperliquid Price Reflects Intensifying Spot Sell Pressure
CoinGlass data revealed that HYPE crypto sell pressure began building at the end of May. Spot flows have been consistently in the red over the last 7 days.
It had its highest daily outflows on 2 June, during which it had over $66 million worth of net outflows. This was a reflection of intensifying sell pressure, which was eventually bound to intensify.
The bearish Hyperliquid price downside in the last 24 hours was the eventual consequence of the intensifying profit-taking. Moreover, holders have been panic-selling after Arthur Hayes’ decision to sell his HYPE crypto holdings.
Over $26 million worth of HYPE crypto was liquidated in the last 24 hours. Interestingly, HYPE coin open interest previously surged from $1.54 billion just before mid-May to $3.43 billion at press time.
Hyperliquid price could be on the verge of further downside given the current market environment. This means it could be on the verge of retreating to sub $60 price levels if factors continue to favor the bears.
