Arthur Hayes, the former CEO of crypto derivatives exchange BitMEX, on Monday, refuted claims of buying Hyperliquid’s native HYPE token. Rumors of the crypto entrepreneur buying HYPE started picking traction earlier in the day.
No, Hayes did not re-purchase HYPE
Replying to an X post by on-chain analytics account Lookonchain, Hayes said that he hasn’t bought any HYPE token recently. Lookonchain had posited that Hayes had scooped about 33,978 HYPE tokens, at around $2.08 million at prevailing market prices.
The on-chain analytics platform shared the following screenshot, saying that “a wallet linked to Arthur Hayes” had withdrawn the aforementioned quantity of HYPE tokens from Bybit crypto exchange.
To recall, on Thursday, Hayes sold his entire HYPE and NEAR tokens holdings, citing unpredictable geopolitical and macroeconomic conditions. Following the news, HYPE experienced a severe price pullback, falling all the way from $72 to as low as $56.
Although Hayes denying rumors of re-entering the trade might have dampened HYPE traders’ enthusiasm, all is not over for them quite yet. Earlier on Monday another whale wallet withdrew 82,029 HYPE tokens from exchanges.
What stands out is that this wallet is a fairly new one, and has withdrawn more than 1.14 million HYPE tokens worth $79.2 million over the past week. All these tokens were then staked into Hyperliquid for yield generation.
Has HYPE already bottomed?
Bitcoin’s (BTC) price crash on Friday was felt across the wider crypto market, and HYPE – despite being one of the best performing tokens in the current market cycle – did not survive unscathed.
Commenting on the token’s current price action, crypto trader Altcoin Sherpa remarked that HYPE likely created a local bottom between the $55 to $60 price range. However, he cautioned that if BTC makes any lower leg, then HYPE could fall down to low $50s.
Fellow crypto trader Chase outlined the low $50 area as the price level they would be interested in trading HYPE. Meanwhile, crypto analyst AlejandroBTC said HYPE’s latest rally was its “blow-off top,” and that the digital asset is likely to fall all the way to $10.
Despite the analysts’ pessimism toward HYPE, institutional trust in the cryptocurrency continues to grow. On May 19, Bitwise dubbed HYPE as “one of crypto’s most undervalued assets.”
