HYPE Token Suffers 10% Drop Amid Arthur Hayes’ High-Profile Sell-Off

Hayes Liquidates Over $4.8 Million Worth of HYPE Tokens

Hyperliquid’s native token, HYPE, witnessed a notable 10% price decline after an eye-catching sell-off by Arthur Hayes, co-founder of BitMEX. On September 21, on-chain analytics firm Lookonchain revealed that Hayes had sold over 96,000 HYPE tokens, earning $4.8 million from the transaction and achieving an approximate profit of $823,000.

Confirming the move, Hayes jokingly remarked on X (formerly Twitter), "Need to pay my deposit on the new Rari 849 Testarossa,” referencing the latest Ferrari plug-in hybrid supercar. The 849 Testarossa, launched in Milan earlier in September, is a high-performance vehicle boasting an impressive 1,036 horsepower and a base price of $540,000.

Contradictory Signals After Hayes’ Bullish Stance

The timing of Hayes’ sell-off sparked debate within the crypto community, as it occurred less than a month after his optimistic comments about Hyperliquid at the Tokyo Web3 Conference in August. Hayes had lauded Hyperliquid’s growth potential, suggesting that based on its annual fee trajectory, the platform could see a massive 126-fold increase in valuation.

However, skepticism brewed among attendees, some humorously speculating that Hayes would liquidate his holdings immediately after delivering his bullish presentation.

HYPE reached a record high of $59.30 on September 18, marking an impressive doubling of its value since January. Yet, Hayes’ abrupt sell-off triggered a steep correction, with the token trading around $47 in Asian markets on the morning of September 22.

Hyperliquid’s Rise and Market Challenges

Hyperliquid, a decentralized derivatives exchange specializing in high-leverage perpetual contracts for cryptocurrencies, has enjoyed growing attention for its rapidly increasing total value locked (TVL). This surge in activity underscores heightened interest in decentralized trading platforms.

Nevertheless, the sell-off has introduced a degree of uncertainty for the burgeoning exchange, as market participants weigh potential volatility against its promising growth trajectory.

Cryptocurrency Market Suffers Broader Losses

HYPE’s downturn mirrored losses across the cryptocurrency industry, as decentralized exchanges and niche tokens faced sharp pullbacks:

• Aster (ASTER), a Binance competitor, plunged by 17%.
• Pump.fun’s token (PUMP), a Solana-based meme coin platform, dropped by 15%.
• Cronos (CRO) recorded a 9% decline.

Major digital assets also sustained losses:

• Ethereum (ETH), Ripple (XRP), and Solana (SOL) shed roughly 4%.
• Dogecoin (DOGE), Cardano (ADA), and Chainlink (LINK) posted even deeper losses.

The cryptocurrency market collectively lost $80 billion in market capitalization within 24 hours, amounting to a 2.2% decline. This widespread sell-off has amplified concerns among traders amid intensified bearish sentiment.

Hayes Highlights Signs of Recovery

Despite the gloomy performance, Hayes expressed cautious optimism, citing potential catalysts for a market reversal. He pointed to the U.S. Treasury General Account (TGA) surpassing $850 billion, arguing that its completion of liquidity absorption could signal the flow of funds back into risk assets, including cryptocurrencies.

While Hayes anticipated improved market conditions as Treasury liquidity stabilizes, traders have remained wary, given the cascading losses observed across both centralized and decentralized crypto asset classes.