MarketsShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailHyperliquid Experiences Decline as Arthur Hayes Sells Position Below $150 Target
The crypto veteran attributed his profit-taking to macroeconomic uncertainties and AI excitement, facing criticism from traders for selling significantly lower than his previous optimistic predictions.
By Krisztian Sandor|Edited by Stephen Alpher Jun 4, 2026, 3:52 p.m. 3 min readMake preferred on
Arthur Hayes speaking at Consensus Miami 2026 (CoinDesk)Key Points:
- The HYPE token from Hyperliquid saw a decline after BitMEX co-founder Arthur Hayes, a key proponent, liquidated his holdings.
- Hayes cited escalating oil prices, the surge of AI IPOs, and overall market risks as reasons for his profit-taking, which drew criticism from the crypto community given his recent bullish outlook.
- Despite the recent downturn, HYPE remains one of the top-performing cryptocurrencies with a 167% increase this year, although Markus Thielen from 10xResearch suggested that the current rally may be overextended.
Hyperliquid's HYPE token, a leading asset in the crypto market this year, experienced a drop from record levels after Arthur Hayes, a long-time supporter, disclosed that he had sold off his entire stake shortly after predicting a much higher future price.
"I just dumped my entire HYPE and NEAR position," Hayes, who is also the chief investment officer at Maelstrom, stated on X.
This sell-off caused HYPE to decrease from around $75 to $67, though it is still up over 70% since mid-May.
Hayes indicated that his decision was influenced by increasing caution regarding the broader market rather than a shift in his perspective on Hyperliquid. He highlighted rising energy costs linked to the Iran situation, several anticipated high-profile AI IPOs, and his belief that financial markets might peak between now and September.
"Time to take profit," he stated.
His sudden exit sparked backlash within crypto circles as he had been one of Hyperliquid's most vocal advocates. Just days prior, he had reiterated a price target of $150 for HYPE and had previously outlined a strategy for the token to achieve that level in a March essay.
Arthur Cheong, founder of DeFiance Capital, characterized Hayes's actions as "the epitome of a guy that over-trades his position" in a post on X.
Others questioned why traders still regard Hayes's market predictions as reliable.
Crypto trader TraderSZ, with over 683,000 followers on X, pointed out that Hayes had recently claimed HYPE could be among the best-performing assets of the year before announcing his sale.
Outstanding Performance in Crypto
Hyperliquid and its HYPE token have been exceptional performers in recent weeks, even as the overall crypto market faced challenges.
While Bitcoin retreated to near its 2026 low of $60,000, HYPE reached new all-time highs and remains up 166% year-to-date, despite its recent fall.
The project runs a blockchain-based, on-chain perpetual futures exchange, enabling users to trade cryptocurrencies and other assets transparently without relying on a centralized exchange.
It has quickly captured market share, clearing approximately $40 billion in weekly perpetual trading volume and $1 billion in spot assets, becoming a key platform for weekend commodity pricing and pre-IPO stocks.
Hyperliquid weekly trading volumes (DefiLlama)Potential Overextension in HYPE Rally
However, the rapid 100% increase over the past month suggests that the rally may be disconnected from the project's fundamentals, as noted by Markus Thielen, founder of 10x Research.
In a report released earlier this week, Thielen remarked that Hyperliquid is still "one of the most impressive businesses in crypto," citing its approximately 77% gross margins, fully on-chain trading system, and a token buyback program funded by protocol revenue.
At its recent peak near $75, HYPE traded at around 25 times its projected fee revenue, which is among the highest levels observed over the past year, according to Thielen. Meanwhile, protocol revenue remains significantly below its peak, and a substantial token unlock set for June could add to selling pressure.
"We have been vocal HYPE bulls," Thielen wrote. "However, at the current prices, the risk-reward has shifted."
Despite this, the long-term outlook remains promising. If trading activity rebounds to previous highs and new products draw in more users, HYPE could eventually validate much higher price targets.
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