Hyperliquid pulls back as Arthur Hayes exits HYPE position below $150 target
Hyperliquid's HYPE token fell from record highs near $75 to $67 after BitMEX co-founder Arthur Hayes revealed he sold his entire HYPE and NEAR positions, despite recently predicting a $150 price target. Hayes cited macro risks including rising energy prices due to the Iran conflict, upcoming AI IPOs, and expectations of a market peak between now and September. The selloff triggered backlash from traders who questioned the inconsistency between his bullish forecasts and early exit. Hayes remains a vocal supporter of Hyperliquid but expressed caution on broader markets. Hyperliquid operates a blockchain-based perpetual futures exchange with $40 billion weekly volume, and HYPE has gained over 70% since mid-May. However, analysts at 10x Research noted that HYPE's rally appeared overextended based on fundamentals: despite strong gross margins (~77%) and a buyback program, the token traded at 25x projected fee revenue, near yearly highs, while protocol revenue remains below peak and a large token unlock in June could add selling pressure. The long-term bull case remains if trading activity recovers and new products gain traction, but near-term risk-reward has shifted.
Key facts
- HYPE dropped from $75 record high to $67 after Hayes sold entire position.
- Hayes cited Iran conflict energy prices, AI IPOs, and peak market fears.
- Traders criticized Hayes for exiting well below his $150 price target.
- HYPE still up 70%+ since mid-May; Hyperliquid has $40B weekly volume.
- 10x Research warns HYPE overvalued at 25x fee revenue with unlock risk.