- The $54 support level is crucial for Hyperliquid price.
- Open interest in HYPE futures contracts fell to $5.86 billion, unwinding leverage.
- The Cryptocurrency Fear and Greed Index reached 15, as Bitcoin ETF outflows led to a risk-off sell-off.
Hyperliquid’s price fell 11% in 24 hours to $55.35, making it one of the hardest-hit assets on an already tough day for cryptocurrencies.
While the broader cryptocurrency market fell, with Bitcoin falling 3.1% towards the $62,000 region, HYPE’s losses were almost four times greater; This is a pattern that tends to emerge when high-beta assets hit a deleveraging wave at the worst possible time.
The picture for 7 days is clearer. HYPE’s price is down 23.7% over the past week, and has now recovered more than a quarter of its value from its all-time high of $75.48, set just eight days ago on June 2.
Why is the price of Hyperliquid falling?
The clearest explanation for the magnitude of the decline lies in the financial derivatives market.
Overly liquid futures open interest fell to $5.86 billion, a sign of closing leveraged long positions rather than placing new short bets.
Meanwhile, spot volume was up 12.5%, meaning actual selling, not just shifts in financing rates, was hitting the market.
Traders who had built leveraged positions during the HYPE period to all-time highs were exiting, and the exits multiplied one another.
Interestingly, the price drop was not driven by any negative news for the Hyperliquid protocol itself.
Daily repo operations continued as usual, and there were no reports of glitches or technical malfunctions.
This was a speculative break, not a fundamental collapse.
But this relaxation occurred against a difficult macro backdrop.
The broader market continues to struggle
the Fear and Greed Index in Cryptocurrencies It fell to 15, deep into extreme fear territory, down from 47 just a month ago, and the total cryptocurrency market cap fell 2.24% in 24 hours to nearly $2.13 trillion.
Traders were pulling back ahead of the Federal Reserve’s June 16-17 meeting, where CME FedWatch data showed a 98.2% probability that interest rates will remain unchanged.
Geopolitical tensions increased pressure after President Donald Trump indicated that the United States would respond to Iran’s alleged downing of an American Apache helicopter near the Strait of Hormuz.
Added to the backend is the Hyperliquid Policy Center (HPC). Submit a joint comment letter with investment firm Paradigm on June 9, to roll back a proposed rule by Financial Crimes Enforcement Network (FinCEN) and OFAC that would implement anti-money laundering and sanctions requirements for stablecoin issuers under the GENIUS Act.
The GENIUS Act was signed into law in July 2025, creating a federal framework for stablecoin payments, and is expected to be implemented by January 2027.
The rule proposed in April would require stablecoin issuers to maintain anti-money laundering programs, file suspicious activity reports, and have the technical ability to block, freeze, or deny transactions that violate U.S. law, across primary and secondary markets.
HPC and Paradigm’s objection is focused on the secondary market scope.
In permissionless blockchain environments, issuers can see wallet addresses and transaction amounts, but cannot identify who is actually making the transactions.
As the filing states: “Issuers are subject to strict liability for transactions that they cannot meaningfully monitor.”
The groups propose retaining greater compliance obligations in the primary market, where issuers have direct relationships with clients, and want to take a narrower approach in secondary markets, with the travel rule applying to pseudonymous portfolio transfers only when operators have a direct relationship with the parties involved.
They also suggested that smart contract-level compliance measures, including address blocklists and transfer restrictions, should be recognized as sufficient, and that money laundering provisions should not extend to protocol developers and on-chain infrastructure participants.
HPC and Paradigm warn that if issuers are held liable for every secondary market interaction on permissionless networks, the likely outcome is that regulated stablecoins fall behind DeFi entirely, leaving a gap that could be filled by unregulated offshore alternatives.
What to watch next for HYPE
The immediate technical focus is the $54 level.
AltcoinSherpa notes that a break below the $54 support would clear the key area that has been keeping HYPE’s price action in place.
If HYPE price is above $54, the token could settle in a consolidation range between $54 and $65.
According to AltcoinSherpaA break below $54 opens the door to a gap between $44 and $54, which would represent a significant pullback from current levels.
On the derivatives side, stabilization or recovery in open interest, which currently stands at $2.48 billion, would be a sign that selling pressure is exhausting itself.
Notably, if open interest continues to decline as prices decline, this indicates that further unwinding is still ahead.
One potential volatility catalyst worth monitoring is SpaceX’s IPO listing, which could attract trading activity into hyperliquid markets and offer a new source of volume.
Whether that translates into price support for HYPE specifically is less certain, but could shift interest and activity on the platform.
A recovery of $63,000 worth of Bitcoin would also improve the broader altcoin environment.
However, until that happens, altcoins like Hyperliquid (HYPE) remain vulnerable to further declines if overall sentiment remains cautious ahead of next week’s Fed meeting.
