Arthur Hayes, co-founder of BitMEX and Chief Investment Officer at Maelstrom, recently liquidated all his holdings in Hyperliquid’s HYPE token and NEAR Protocol’s NEAR token. This significant decision was made on June 4, representing a notable shift for someone who had previously shown strong conviction in these assets. Just a while ago, Hayes was making bold investments in HYPE, even referring to it as part of his personal "holy trinity" of cryptocurrencies.
Following the liquidation, Hayes sold 247,334 HYPE tokens for about $18 million, which led to an immediate decline in its price ranging from 4% to 10%, depending on the data source. The NEAR token also experienced selling pressure as traders reacted to the news.
Why did Hayes change his mind? Earlier this year, he purchased over $1 million in HYPE and set a price goal of $150 for it. He then placed a substantial bet of $100,000, indicating a belief that HYPE would outshine others in the top 10 crypto assets by year-end. The shift in Hayes’s strategy suggests growing macroeconomic concerns and political risks influenced his decision. Geopolitical tensions, rising energy costs, and the increasing impact of artificial intelligence on market trends were among the factors he identified.
Understanding Hayes's timing is critical. He previously anticipated that cryptocurrency markets might reach their peak around September 2026. Selling before this anticipated high indicates either a significant change in his outlook or a recognition that risks are manifesting sooner than expected.
The immediate market response speaks volumes. The drop in HYPE price after the announcement reinforces Hayes's influence in the market. For those holding HYPE, the token had recently gained traction due to increased trading volume on Hyperliquid and Hayes’s endorsement. NEAR has a more extensive institutional backing, which creates a different market dynamic.
All eyes will be on Hayes’s upcoming essay titled “Reality Test,” scheduled for release on June 9. Investors will closely analyze this piece, as it could offer compelling reasons for potential headwinds facing altcoins as the market approaches fall. If Hayes presents a strong argument, it may trigger a wave of investors reallocating from speculative assets into Bitcoin or stablecoins, impacting the broader market trajectory.