- The $54 support level is important for Hyperliquid’s price.
- HYPE’s open interest has dropped to $5.86B, leading to easing.
- The Crypto Fear and Greed Index hit 15 as the exit of the Bitcoin ETF triggered a sell-off.
The price of Hyperliquid has dropped 11% in 24 hours to $55.35, making it one of the most difficult stocks in the already difficult days of crypto.
While the broader crypto market is down, with Bitcoin falling 3.1% to the $62,000 area, HYPE’s losses were nearly four times larger; a pattern that tends to show up when high beta stocks are holding low tides at worst times.
The 7-day image is larger. HYPE has fallen by 23.7% in the past week and has now recovered more than a quarter of its value from its all-time high of $75.48, which was established eight days ago on June 2.
Why is the price of Hyperliquid falling?
A clear explanation of the size of the drop is in the emerging market.
Hyperliquid’s open interest has dropped to $5.86 billion, a sign that existing positions were closed instead of placing new bets.
At the same time, real estate volume rose 12.5%, meaning real sales and not just currency fluctuations are hitting the market.
Traders who made high positions during the HYPE rush were exiting, and the exits were compounded.
Interestingly, the price drop was not driven by any negative news about the Hyperliquid protocol itself.
Daily shopping continued as usual, and there were no reports of high activity or technical failures.
It was an imaginary relief, not an actual collapse.
But this liberalization took place against the backdrop of significant challenges.
The main market continues to struggle
The Crypto Fear and Greed Index It fell to 15, the most in the worst part, down from 47 a month ago, and the total crypto market capitalization has fallen by 2.24% in 24 hours to about $2.13 trillion.
Traders were pulling back ahead of the Federal Reserve meeting on June 16-17, with CME FedWatch data showing a 98.2% probability that rates will remain unchanged.
The geopolitical conflict added to the tension after President Donald Trump indicated that the US would respond to Iran’s alleged downing of an American Apache helicopter near the Strait of Hormuz.
In addition to the results, the Hyperliquid Policy Center (HPC) wrote a letter of comment and went to firm Paradigm on June 9, to push back the law requiring FinCEN and the Office of Assets Control to use anti-money laundering and necessary penalties for stablecoin providers under the GENIUS Act.
The GENIUS Act was signed into law in July 2025, establishing a system for paying the fees, which is expected to be completed by January 2027.
The proposed April rule would require stablecoin issuers to maintain AML programs, submit Suspicious Activity Reports, and have the ability to prevent, suspend, or deny transactions that violate US law, both in the primary and secondary markets.
HPC and Paradigm counters focus on the secondary market.
In a permissionless blockchain environment, providers can see wallet addresses and transactions, but cannot identify who is doing the transaction.
As the booking put it: “The moneylenders have strict liability in cases that cannot be handled by the police.”
These groups are considering maintaining greater qualifications in the primary market, where providers have a direct relationship with the customer, and they want a more limited approach in the secondary markets, and the Travel Law is using anonymous bag transfers only if the employees have a direct relationship with those involved.
They also said that the measures of smart agreement level compliance, including blocklists of addresses and transfer restrictions, should be recognized sufficiently, and that fraudulent transactions should not exceed the developers of the protocol and the participants in the construction chain.
HPC and Paradigm warned that if issuers are responsible for any market transactions on unlicensed networks, the result is that regulated stablecoins will leave DeFi entirely, leaving a gap that other unregulated offshore methods can fill.
What to watch after the HYPE
The usual technical target is the $54 level.
AltcoinSherpa says that a break below the $54 support level will clear the key areas that have been active in the HYPE price movement.
If the HYPE is above $54, the signal can be between $54 and $65.
According to AltcoinSherpaa break below $54 opens the door to a gap of $44-$54, which would indicate a significant further decline from the current levels.
For derivatives, a stabilization or recovery in open interest, currently at $2.48 billion, could be a sign that selling pressure is tiring.
In particular, if the open interest rate is falling while prices are falling, it indicates that another relaxation is ahead.
One of the things that could make volatility worth watching is the SpaceX IPO series, which could attract trading activity to the Hyperliquid markets and show a new source of volume.
But whether this means support for the price of HYPE is not really certain, but it can change the interest and activity on the platform.
Bitcoin’s return to $63,000 would also help the altcoin ecosystem.
However, until that happens, altcoins like Hyperliquid (HYPE) remain in the spotlight again as the big picture remains cautious heading into next week’s Fed meeting.
