HYPE price has climbed to fresh record highs amid growing demand for Hyperliquid investment products and a high-profile short squeeze that forced a major bear to abandon a $110 million position.
Summary
- HYPE price hit a record high near $75 after Grayscale launched its Hyperliquid Staking ETF.
- Hyperliquid ETFs from Bitwise and 21Shares have attracted over $136 million in net inflows.
- Bullish technicals and whale capitulation put the $100 level in focus for HYPE.
According to data from crypto.news, Hyperliquid (HYPE) price traded near $69.70 at press time on June 3, up more than 12% over the past week and nearly 70% over the past month. The token briefly climbed to a new all-time high near $75 yesterday as traders responded to a string of institutional developments surrounding the ecosystem.
Grayscale’s launch of the Hyperliquid Staking ETF has emerged as the latest catalyst. The product arrived after intense competition among issuers seeking exposure to HYPE, with Grayscale reportedly undercutting rivals through a 0.29% management fee.
The launch followed earlier entries from the 21Shares Hyperliquid ETF and Bitwise Hyperliquid ETF, which together have attracted more than $136 million in net inflows, according to SoSo Value data.
Those funds now collectively hold roughly 1% of HYPE’s total market capitalization, highlighting growing institutional participation in the asset. Recent SEC filings have added to the narrative after major financial firms disclosed exposure to Hyperliquid-related investment products, reinforcing the perception that HYPE is increasingly attracting traditional capital.
Hyperliquid’s tokenomics continue to amplify the impact of those inflows. The protocol allocates over 97% of platform revenue toward buying back HYPE from the open market, creating persistent demand as trading activity expands.
Rising volumes across crypto, commodities and prediction markets have increased the size of those purchases, tightening available supply even as investor interest accelerates.
Institutional demand and platform activity support the rally
Trading activity on Hyperliquid has expanded well beyond cryptocurrency perpetual futures. Recent growth in crude oil perpetual contracts and macro-linked prediction markets has attracted traders seeking around-the-clock exposure while traditional markets remain closed.
Platform adoption has translated directly into stronger fundamentals. Per DefiLlama, the total value locked on the Hyperliquid network has climbed to approximately $5.82 billion, one of the highest levels in the protocol’s history. Higher platform usage generates additional fees, which in turn feed the protocol’s buyback system and reinforce demand for HYPE.
A major sentiment shift unfolded in derivatives markets this week after a well-known whale known as Loracle closed his entire short position at a realized loss of roughly $46.46 million. Shortly after exiting the trade, he opened a 2x leveraged long position worth approximately $5.73 million.
The reversal removed one of the market’s largest public bearish bets and reinforced the view among traders that institutional demand and buyback activity continue to overpower selling pressure.
Technical setup places $100 within reach
On the daily chart, HYPE has entered price discovery after breaking above its previous record high near $75.8. The move completed a major continuation breakout and pushed the token beyond the upper boundary of its recent trading range.
Momentum indicators remain firmly bullish. The MACD continues to print a positive crossover while the histogram has expanded to its highest level in months. At the same time, the Aroon Up indicator stands above 85% while Aroon Down has fallen to zero, highlighting the strength of the current uptrend.
According to crypto analyst Ali Martinez, HYPE has invalidated earlier sell signals and may have room to extend its rally toward higher levels.
“With prior sell signals invalidated, I’m watching $97 and $163 as potential upside targets.”
Fibonacci extension levels also support the bullish outlook. Measuring the advance from the January low near $20.5 to the recent breakout places the 1.618 extension at approximately $110, giving bulls a clear technical path beyond the psychologically important $100 level.
On the downside, traders will be watching the former breakout zone around $75 as the first major support. A drop below that level could expose the next support areas near $64 and $55, corresponding to the 0.786 and 0.618 Fibonacci retracement levels.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
