Arthur Hayes Sells HYPE After Bullish Prediction: Market Reacts
Arthur Hayes Exits HYPE Position, Cites Ferrari Purchase
Arthur Hayes, co-founder of BitMEX, has sold his entire position in HYPE tokens, totaling $5.1 million. This move comes less than a month after he publicly predicted the token could experience a 126x rally.
Hayes confirmed the sale, jokingly stating the profits would contribute to the down payment on a new Ferrari Testarossa.
Details of the Sale
Data from Lookonchain indicates Hayes sold 96,628 HYPE tokens, realizing a profit of approximately $823,000, a 19.2% increase over his initial investment.
Conflicting Signals
This sale occurred weeks after Hayes presented a bullish outlook for HYPE at the WebX Asia conference, suggesting a potential 126-fold increase due to Hyperliquid's growing decentralized exchange revenues and its role in the stablecoin market.
His explanation for the sale? Funds were needed to finance the purchase of a Ferrari Testarossa, as he tweeted.
Market Speculation
Hayes' sudden exit has fueled speculation within the crypto community. Some believe he might be shifting his investments into ASTER, a recently launched token. Others view it as simple profit-taking or a potential sell signal for retail investors. Crypto commentator Yoshitaka noted that Hayes' prior strong support for HYPE makes this a notable shift.
Past Behavior
This isn't the first time Hayes' public statements have diverged from his portfolio actions. He previously sold over $13 million in assets, including ETH, ENA, and PEPE, despite forecasting a significant altseason.
Critics suggest his public pronouncements don't always align with his actual trading strategies.
HYPE Price Reaction
The market reacted negatively to the news. According to CoinMarketCap, HYPE experienced an 8.3% decline in the past 24 hours, trading at around $49.9, underperforming the broader crypto market.
Technical indicators point to continued bearish momentum, with the MACD showing bearish divergence and the RSI approaching oversold levels. The token has also broken below its $52–$53 support level. A relief bounce could occur if buyers reappear.
This downturn follows HYPE reaching an all-time high of $53.44 earlier this month, marking a rally of over 1,200% from late-2024 lows.
Positive developments, such as Native Markets securing the mandate to manage Hyperliquid's USDH stablecoin rollout, had previously contributed to the token's momentum.
These events illustrate the inherent volatility of the cryptocurrency market and the potential impact of influential figures' trading decisions.