Hyperliquid dropped 11% in 24 hours to $55.35, becoming one of the weakest major assets in a broad crypto pullback. Bitcoin also fell 3.1% toward $62,000, but HYPE’s losses were far larger. The token has also fallen 23.7% over seven days. It has now given back more than a quarter of its value from the all-time high of $75.48, set on June 2.
The sharp decline points first to the derivatives market. Hyperliquid futures open interest dropped to $5.86 billion, which suggested that leveraged long positions were closing.
At the same time, spot volume rose 12.5%. That signaled direct selling, not just a shift in funding rates or paper positioning. Why did HYPE fall so quickly when the protocol itself showed no major problem? The answer appears to be a speculative unwind. Traders who bought during the rally began exiting, and those exits reinforced one another.
There were no reports of exploits or technical failures. Daily buybacks continued normally, and the protocol itself did not face any negative news.
The move came during a difficult period for the wider market. The Crypto Fear and Greed Index fell to 15, deep in extreme fear territory, down from 47 one month earlier. Total crypto market capitalization also dropped 2.24% in 24 hours to about $2.13 trillion. Traders pulled back ahead of the Federal Reserve’s June 16–17 meeting.
CME FedWatch data showed a 98.2% chance that rates would stay unchanged. In addition, geopolitical tension added pressure after President Donald Trump said the US would respond to Iran allegedly shooting down an American Apache helicopter near the Strait of Hormuz.
Read More: XRP vs Hyperliquid: Which Crypto Has More Upside in the Next Market Cycle?
Technical traders now focus on the $54 level. AltcoinSherpa said a break below that support could open the door to the $44–$54 gap. If HYPE stays above $54, the token could trade inside a $54 to $65 range. That would give the market room to stabilize after the recent drop.
Open interest remains a key signal to watch. If it starts to recover, selling pressure may be easing. If it keeps falling while the price also falls, the unwinding may continue.
The Hyperliquid Policy Centre and Paradigm also filed a joint comment letter on June 9 over a proposed rule from FinCEN and OFAC under the GENIUS Act. The filing argued that stablecoin issuers should not face strict responsibility for secondary-market activity they cannot meaningfully police.
Another possible catalyst sits ahead in the SpaceX IPO listing, which could bring more trading activity to Hyperliquid’s markets. Bitcoin reclaiming $63,000 would also improve the backdrop for altcoins, including HYPE.
The Hyperliquid price fell 11% in 24 hours as leveraged traders unwound positions and futures open interest declined. The selloff occurred amid broader crypto market weakness, rising fear levels, and caution ahead of the Federal Reserve meeting. Traders now closely watch the $54 support level for signs of stabilization or further downside.