Key Takeaways
- BitMEX co-founder Arthur Hayes offloaded 247,334 HYPE tokens valued at approximately $18 million despite earlier forecasting $150 price levels
- Token valuation declined from all-time peaks around $75 to roughly $67 in the wake of Hayes’s exit announcement
- Hayes pointed to escalating energy costs, imminent AI company public offerings, and market timing concerns as rationale for the sale
- Analyst Markus Thielen from 10xResearch flagged excessive valuations, noting HYPE traded at approximately 25x anticipated fee income
- Year-to-date gains remain strong at 166%, while Hyperliquid captured a historic 6.63% share of worldwide perpetual futures trading volume in May
The Hyperliquid token experienced a notable correction after prominent crypto figure Arthur Hayes, co-founder of BitMEX, revealed he had liquidated his complete holdings—mere days after publicly projecting prices could climb to $150.
According to blockchain analytics platform Lookonchain, Hayes divested 247,334 HYPE tokens for roughly $18.02 million. The transaction triggered a price retreat from record territory near $75 down to approximately $67.
In a detailed X post explaining his decision, Hayes outlined three primary factors: escalating energy commodity prices linked to Middle Eastern geopolitical tensions involving Iran, three significant artificial intelligence company initial public offerings scheduled before the third quarter, and apprehension that cryptocurrency markets might reach their cyclical peak sometime between the present and September. He promised additional analysis in a forthcoming piece titled “Reality Test.”
“Time to take profit,” Hayes declared, later adding in a follow-up comment: “I’ll be back.”
The decision sparked swift criticism within crypto circles. Arthur Cheong, who founded DeFiance Capital, characterized it as “the epitome of a guy that over-trades his position.” Meanwhile, TraderSZ, a cryptocurrency analyst with more than 683,000 followers, highlighted the contradiction between Hayes’s recent arguments that HYPE could become one of the year’s top-performing digital assets and his sudden exit.
Valuation Concerns Mount
Prior to Hayes’s sale, 10xResearch’s Markus Thielen had already raised red flags about stretched valuations. While acknowledging Hyperliquid as “one of the most impressive businesses in crypto” with roughly 77% gross profit margins and robust onchain trading architecture, Thielen expressed caution.
At the $75 price point, HYPE commanded approximately 25 times expected fee revenue—approaching its most expensive valuation in twelve months. Thielen additionally observed that protocol revenue hasn’t yet returned to previous highs, while a substantial token unlock scheduled for June could introduce additional downward pressure.
Despite near-term headwinds, HYPE maintains impressive 166% gains since January.
Record Platform Metrics Continue
Hyperliquid’s underlying business metrics showed continued strength even as token prices retreated. May marked a milestone with perpetual futures volume representing 6.63% of aggregate global centralized exchange perpetual contract volume. Trading volume as a percentage of Binance’s activity reached 14.4%, establishing another record.
Institutional adoption continues accelerating. Grayscale’s newly announced Hyperliquid ETF, which will trade under the ticker HYPG, is preparing to launch with a 0.29% annual management fee. Previously established ETF products THYP and BHYP have collectively attracted $141 million in net capital inflows. Bitwise Chief Executive Hunter Horsley disclosed that more than 7.7 million HYPE tokens have been delegated to Bitwise validators.
From a technical analysis perspective, HYPE’s critical support level remains at $59–$60. For the uptrend to resume toward $110–$130 targets, the token would need to break through and close above the $83–$95 resistance band.
Whale wallet data revealed the differential between long and short positions has compressed to just $0.01 billion, indicating major holders may be adjusting their allocations.
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