HYPE Price Falls Below $70 After Arthur Hayes Sells $18M Position

Hyperliquid’s HYPE token lost momentum this week after crypto entrepreneur Arthur Hayes disclosed that he had exited his HYPE position. The sale coincided with a sharp decline in price and renewed debate about whether the token’s recent rally had become overstretched.

HYPE traded near $69 on June 4 after falling more than 4% over the previous 24 hours. The decline came after months of strong gains that pushed the token from below $30 in February to a record high above $75.

While Hyperliquid continues to post strong network activity, traders are now focused on whether the latest pullback marks a temporary correction or the beginning of a deeper retracement.

Arthur Hayes Dumps Hyperliquid Crypto Stash

Arthur Hayes sold 247,334 HYPE tokens valued at about $18.02 million, according to monitoring platform Onchain Lens. He also offloaded an unspecified amount of NEAR tokens, adding pressure to two assets that had drawn strong trader interest.

Hayes confirmed the move on social media, stating that he had dumped his entire HYPE and NEAR positions. He said he would explain the decision in an upcoming essay titled “Reality Test.” The announcement quickly spread across the market and triggered renewed discussion around profit-taking in high-performing altcoins.

The sale marks a sharp shift from his previous bullish stance on Hyperliquid. Hayes had earlier suggested that HYPE price could overtake Solana in market capitalization during the bull run. His latest exit now creates a different signal for traders watching large-holder behavior.

He cited several macro risks behind the move. These included higher energy prices tied to the Iran conflict, inventory restocking, and possible large AI IPOs before early Q3. Hayes also suggested that market highs could form between now and September, making profit-taking more attractive.

Hyperliquid Crypto Sentiment Weakens After Sale

Meanwhile, HYPE reacted quickly after Hayes disclosed the sale. The token dropped more than 4%, erasing part of its recent gains. TradingView data showed HYPE near $69.10 on June 4, down about 4.29% on the day.

The move below $70 weakened short-term sentiment, especially as that level had acted as a psychological marker during the recent rally. A recovery above $70 would be needed to stabilize the structure and reduce immediate downside pressure.

Even so, Hyperliquid crypto remains one of the strongest-performing assets over recent months. HYPE rose from below $30 in February to above $75, supported by stronger trading activity and growing attention around the Hyperliquid ecosystem.

Notably, the pullback came shortly after Grayscale Investments launched its Hyperliquid staking ETF on June 3. That development had added institutional weight to the project’s story, but Hayes’ exit shifted attention back toward short-term market risk.

Hyperliquid Fundamentals Remain Strong

While short-term sentiment has weakened, Hyperliquid’s underlying business continues to show strength.

The platform remains one of the largest decentralized perpetual futures exchanges in the crypto industry. Trading volume has remained elevated in recent months, helping Hyperliquid generate substantial fee revenue compared with many competing protocols.

The network has also continued to reduce token supply through ongoing buybacks and token burn mechanisms. Those factors have supported long-term investor interest despite periodic market corrections.

As a result, the current decline presents a contrast between strong ecosystem fundamentals and weakening short-term technical conditions.

The next few trading sessions may determine which narrative gains control. If HYPE reclaims the $70 area, bullish momentum could stabilize. If sellers maintain pressure below that level, traders may increasingly focus on lower support zones near $60 and potentially $50.