Hyperliquid has surged to a new all-time high of $73.7 as institutional inflows, aggressive token buybacks, and mounting losses among leveraged short sellers fuel one of the strongest rallies in the crypto market.
Summary
- Hyperliquid price surged to a new all-time high of $73.7 as ETF inflows, protocol buybacks, and bullish market sentiment boosted demand for HYPE.
- Whale trader “Loracle” reduced a large HYPE short position after losses exceeded $30 million, adding to short-squeeze pressure during the rally.
- Technical indicators remain bullish, with analysts targeting $97 and $163 next, while liquidation data shows significant short interest clustered above current prices.
According to data from crypto.news, Hyperliquid (HYPE) price climbed above its previous record and reached $73.73 on June 1, extending a rally that has seen the token gain more than 70% over the past month. The move comes at a time when Bitcoin and Ethereum remain well below their respective highs, allowing Hyperliquid to emerge as one of the few large-cap cryptocurrencies still trading in price discovery mode.
The latest leg higher followed a major regulatory development in the United States. Last week, the Commodity Futures Trading Commission approved the first federally regulated Bitcoin perpetual futures contract through Kalshi, a milestone many traders viewed as validation for the perpetual futures market that Hyperliquid helped popularize. The decision strengthened sentiment around decentralized derivatives platforms and sparked renewed demand for HYPE.
Market enthusiasm has also been reinforced by Hyperliquid’s expanding footprint beyond perpetual trading. The protocol recently rolled out native prediction markets that allow users to trade fully collateralized contracts tied to real-world events, including inflation reports and central bank decisions.
The launch places Hyperliquid in more direct competition with prediction market platforms while keeping activity within its own ecosystem.
Hyperliquid rally gains support from ETFs and whale positioning
Fresh capital from newly launched exchange-traded funds has added another source of demand beneath the rally.
Spot Hyperliquid ETFs have continued attracting inflows despite weakness across several other crypto investment products. As crypto.news reported earlier, HYPE ETFs absorbed more than 1% of the token’s market capitalization within their first few weeks of trading, outperforming the launch pace recorded by spot Bitcoin, Ethereum, and Solana ETFs on a market-cap-adjusted basis.
Bloomberg ETF analyst Eric Balchunas recently highlighted the performance of the 21Shares Hyperliquid ETF, THYP, noting that the fund had already gained roughly 50% within two weeks of launch. The rapid appreciation has drawn additional attention from traditional investors seeking exposure to one of crypto’s fastest-growing assets.
Institutional accumulation has expanded beyond ETFs. Recent market disclosures showed an a16z-linked wallet accumulated approximately $192 million worth of HYPE, while Goldman Sachs disclosed exposure to Hyperliquid-related investment strategies through regulatory filings.
Although the positions remain small relative to the firm’s overall portfolio, the disclosures reinforced the perception that institutional investors are increasingly viewing Hyperliquid as a legitimate crypto infrastructure play rather than a speculative trading token.
Meanwhile, Hyperliquid Strategies, the Nasdaq-listed treasury company trading under the PURR ticker, remains one of the largest known HYPE holders. The company controls roughly 17.6 million HYPE tokens and recently reported quarterly net income exceeding $150 million, largely driven by appreciation in its token reserves.
Another major driver of the rally has come from Hyperliquid’s unique buyback mechanism. Unlike most crypto protocols, Hyperliquid redirects approximately 98% of trading fees into its Assistance Fund, which continuously purchases HYPE on the open market.
DefiLlama data shows the protocol has generated more than $1.18 billion in cumulative revenue since launch, with nearly all of that value eventually recycled into token acquisition.
The buyback system has already removed an estimated 14% of the circulating supply from active markets. Because purchases occur automatically and scale alongside trading activity, periods of elevated volume create a direct increase in buy pressure.
Stablecoin reserves are contributing to the same cycle. Hyperliquid’s quote-asset arrangement allows up to 90% of USDC reserve yields generated on platform balances to be redirected toward ecosystem incentives and token buybacks. With billions of dollars parked across the exchange, reserve income has become another meaningful contributor to demand.
Attention has recently centered on Hyperliquid whale trader “Loracle,” who built one of the largest publicly tracked HYPE short positions. As prices continued climbing through successive highs, the trader began reducing exposure after losses mounted into the tens of millions of dollars.
Blockchain tracking accounts reported that Loracle cut a portion of the position after HYPE crossed the $70 level. At one point, the whale’s unrealized losses exceeded $30 million, making the trade one of the most closely watched positions on the platform.
The partial unwind removed some downside pressure from the market while highlighting the risks facing traders attempting to short a token still in price discovery.
HYPE breakout places $97 and $163 targets in focus
Technical indicators continue to favor buyers following the latest breakout. The daily chart shows HYPE trading well above its 50-day moving average near $47.6 and its 200-day moving average near $35.4. The token reclaimed both levels during the first quarter before accelerating into a near-vertical advance throughout May.
Price action has also maintained a clear sequence of higher highs and higher lows since March, with former resistance zones repeatedly turning into support after each breakout.
The Moving Average Convergence Divergence indicator shows the MACD line holding above the signal line while histogram bars continue expanding in positive territory. Historically, similar MACD structures on HYPE have coincided with extended upside moves rather than immediate trend reversals.
According to crypto analyst Ali Martinez, HYPE has invalidated earlier sell signals and moved deeper into price discovery.
“Hyperliquid continues to make new record highs, pushing deeper into price discovery. With prior sell signals invalidated, I’m watching $97 and $163 as potential upside targets.”
The analyst’s chart highlights HYPE’s breakout above the previous $58 and $73 resistance levels, leaving the token in uncharted territory with few historical barriers overhead.
Liquidation data suggests additional volatility may still lie ahead. CoinGlass heatmaps show a dense concentration of short-liquidation liquidity sitting between $75 and $77. Those levels contain leveraged positions that could be forced to close if HYPE extends its rally. Such liquidations typically require traders to buy back the asset, creating additional upward pressure.
A successful push through that region could trigger another wave of short covering similar to the move that followed HYPE’s break above $70.
The same heatmap shows meaningful liquidity concentrated around $71, $70, and the high-$68 region. Those areas may attract buyers during any short-term pullback and could determine whether the current breakout remains intact.
Open interest has also risen alongside price rather than falling, suggesting fresh capital continues entering the market instead of existing traders simply taking profits. Funding rates remain positive but have not yet reached the extreme levels often associated with euphoric tops.
Risks remain despite the strong momentum. A decisive break below $70 could expose HYPE to a deeper retracement toward the former breakout area between $64 and $60.
Further weakness could bring the 50-day moving average back into focus, although current price action leaves a substantial buffer between spot levels and longer-term trend support.
For now, however, Hyperliquid remains one of the strongest-performing assets in the crypto market. ETF inflows, institutional accumulation, prediction-market expansion, continuous buybacks, and mounting pressure on short sellers continue supporting the rally as traders assess whether the token’s latest record high is merely another step toward the $97 target now being discussed across the market.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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