Arthur Hayes' return to Hyperliquid has halted a sharp selloff, but bearish technicals keep the $55 support zone in play.
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Hyperliquid rebounds to $61 as Arthur Hayes re-enters after selloff
Hyperliquid (HYPE) traded near $61 as of 06:55 UTC on June 8, recovering from last week's selloff after BitMEX co-founder Arthur Hayes appeared to re-enter the market.
On-chain data tracked by Arkham Intelligence showed Hayes moving funds back into Hyperliquid positions after the token dropped more than 15% from its June highs, crypto.news reported.
The rebound coincides with sustained demand for spot HYPE exchange-traded funds. Bitwise's BHYP and 21shares' THYP have accumulated $71.1 million and $75.8 million in assets under management, respectively, since launching in May, CNBC reported. Grayscale entered the space on June 3 with its Hyperliquid Staking ETF (HYPG), which held $4.5 million as of June 5. The three products have drawn nearly $160 million in combined inflows within weeks of launch.
Despite the bounce, technical signals remain bearish. A break below the $55 support zone could trigger a cascade of liquidations, given the concentration of leveraged long positions clustered near that level, Coinglass data shows. The token sits more than 40% below its all-time high set earlier this year, while bitcoin has fallen 16% over the past week, dragging the broader crypto market lower.
A Buyback Model Draws TradFi Attention
Hyperliquid is a decentralized perpetual futures exchange built on its own blockchain. The platform directs 99% of trading fees toward buying back HYPE tokens, a mechanism Bitwise chief investment officer Matt Hougan described as similar to a corporate share buyback. The exchange saw daily volume reach roughly $1 billion in crude oil alone during last summer's U.S.-Iran conflict, 21shares vice president Stephen Coltman said.
Nate Geraci, president of NovaDius Wealth Management, said the ETF inflows caught his attention because they arrived during a broad crypto selloff. "This is a market that's 1% penetrated into its potential market," Hougan told CNBC, noting that most investors still do not know what Hyperliquid is.
What Happens if $55 Breaks
Hayes' re-entry may provide short-term support, but the broader technical picture remains fragile. If $55 fails to hold, analysts warn of accelerated downside that could ripple through HYPE-related DeFi positions on Ethereum and Solana. The token's next major support sits near $48, a level not tested since April.
The platform remains unavailable to U.S. users, though Grayscale research head Zach Pandl said he expects regulatory approval by 2027, calling it "a reasonable timeline for when we could have sufficient regulatory clarity around decentralized exchanges." Geraci cautioned that rising competition from both traditional finance and DeFi could intensify under a more favorable regulatory environment.
The broader regulatory backdrop adds uncertainty. The Clarity Act, which would establish the CFTC as the primary regulator for digital assets, is expected to receive a Senate floor vote in the coming weeks. JPMorgan Chase CEO Jamie Dimon has publicly opposed provisions that would allow crypto firms to offer rewards without bank-level consumer protections.
This article is for informational purposes only and does not constitute investment advice.
[1] Arthur Hayes re-enters Hyperliquid as technicals warn of a drop below $55[2] Bitcoin is cratering, but a new Wall Street crypto hype is on the rise - CNBC[3] Airwallex snaps up revenue recognition platform Leapfin - FinTech Futures[4] Big banks’ gloves come off in their fight with crypto - CNN[5] The Fed May Be About To Face Its Biggest Inflation Test Yet - Seeking Alpha
