The BitMEX co-founder announced on X that he had sold his entire HYPE and NEAR positions and will publish an essay explaining his decision, titled “Reality Test.”
He cited several reasons for taking a more cautious stance. These included higher energy prices driven by the war in Iran, companies rebuilding inventories, multiple major AI IPOs on the horizon, and the possibility that President Donald Trump could adopt an anti-AI stance ahead of the midterm elections.
In short, Hayes cautioned that the market could be approaching a local peak between now and September.
I just dumped my entire $HYPE and $NEAR position, I will explain why in my essay “Reality Test” dropping next Tuesday.
TLDR:
– Higher energy prices due to Iran war and inventory restocking
– 3 Mega AI IPOs between now and early Q3
– Prediction that Trump goes anti-AI to win…— Arthur Hayes (@CryptoHayes) June 4, 2026
HYPE Price Declines
Hayes’ announcement came amid a down day for HYPE. At the time of writing, the token is trading just above $65, roughly 10% lower over the past 24 hours.
Despite the single-day drop, HYPE remains up about 16% for the week, making it the best performer among the top 10 cryptocurrencies by market capitalization. It is the only one in that group showing a weekly gain.
The timing of his sale attracted attention because Hayes had recently expressed strong optimism about HYPE, suggesting it could reach $150. That contrast led traders to ask whether he had rapidly changed his view or was simply taking profits after a pronounced move. Either way, liquidating large positions is a recurring pattern for him.
Other Investors Accumulating
While Hayes sold, other market players have been buying. Hyperliquid Strategies reported acquiring an additional 1.4 million HYPE—roughly $95 million worth—over the past seven days. As a result, their cash holdings fell by about $15.5 million.
The firm now holds approximately 23.7 million HYPE and about $141.7 million in cash.
At current prices, Hyperliquid’s shares trade at about 1.29x net asset value (NAV). That premium gives the firm flexibility to issue at-the-market (ATM) shares, sell them, and deploy proceeds to buy more HYPE.