Hyperliquid experiences a downturn from its all-time highs as Arthur Hayes, a notable figure in the crypto space, exits his position before reaching the $150 price target. The crypto veteran attributed his decision to macroeconomic concerns and the AI hype, facing criticism from traders for selling at a price lower than his recent optimistic projections.

Key Points:

— The HYPE token from Hyperliquid has seen a decline from its record highs following the sale of its position by BitMEX co-founder Arthur Hayes, who is one of its leading advocates.

— Hayes cited increasing oil prices, upcoming AI IPOs, and market uncertainties as reasons for taking profits, which led to backlash within the crypto community after his previous bullish predictions for much higher valuations.

— Despite a 167% gain year-to-date, 10xResearch’s Markus Thielen suggested that the rally may be overheated in the short term.

After a remarkable performance, Hyperliquid’s HYPE token took a hit following the news that long-time supporter Arthur Hayes sold off his entire position shortly after forecasting higher valuations. «I just dumped my entire HYPE and NEAR position,» Hayes, who is the co-founder of BitMEX and chief investment officer at Maelstrom family office, posted on X.

The sell-off caused HYPE to drop to $67 from its previous highs near $75, although the token has still increased over 70% since mid-May. Hayes indicated that his choice was influenced by a cautious outlook on the broader market rather than a shift in his opinion on Hyperliquid. He mentioned the rising energy costs linked to the conflict in Iran, several significant AI IPOs expected soon, and his belief that financial markets might peak between now and September.

«Time to take profit,» he commented.

This sudden exit stirred discontent in crypto circles, as Hayes had been among Hyperliquid’s most prominent supporters. Just days prior, he reaffirmed a $150 price target for HYPE and outlined a strategy in a March essay detailing how the token could achieve that price.

Arthur Cheong, founder of the crypto investment firm DeFiance Capital, criticized the move, labeling it as «the epitome of a guy that over-trades his position» in a post on X. Others raised concerns about why investors still regard Hayes’ market predictions as reliable signals.

Crypto trader TraderSZ, who boasts over 683,000 followers on X, pointed out that Hayes had recently claimed that HYPE could be one of the year’s top performers before announcing the sale.

Standout Performance

Hyperliquid and its HYPE token have distinguished themselves in recent weeks, even as the broader crypto market faced challenges. While bitcoin dipped close to its 2026 lows at $60,000, HYPE reached new all-time highs and remains up 166% year-to-date despite Thursday’s downturn.

The project operates a blockchain-based perpetual futures exchange, enabling users to trade cryptocurrencies and other assets through a transparent order book, avoiding reliance on centralized platforms. It has rapidly captured market share, achieving approximately $40 billion in weekly perpetual volume and $1 billion in spot assets, making it a closely watched venue for weekend commodity prices and pre-IPO stocks.

A Potential Overextension

However, the 100% gain over the last month suggests that the recent surge may be overstretched relative to the project’s fundamentals, according to Markus Thielen, founder of 10x Research. In a report released earlier this week, Thielen remarked that Hyperliquid remains «one of the most impressive businesses in crypto,» noting its roughly 77% gross margins, fully on-chain trading infrastructure, and a token buyback program supported by protocol revenue.

At its recent peak near $75, HYPE was trading at around 25 times projected fee revenue, which is among the highest levels observed in the past year, as per Thielen. Meanwhile, protocol revenue is significantly below its peak, and a major token unlock anticipated for June could lead to additional selling pressure.

«We have been vocal HYPE bulls,» Thielen noted. «But at current prices, the risk-reward has shifted.» He maintained that the long-term bullish outlook is still persuasive, suggesting that if trading activity rebounds to previous highs and new products attract a larger user base, HYPE could eventually validate much higher valuations.