Key Insights:
- Hyperliquid reportedly plans to buy back and possibly burn more HYPE price after activating AQAv2.
- The move may boost HYPE crypto confidence, possibly propelling it higher.
- Wintermute draws down its HYPE short exposure.
The HYPE price recently established a new all-time high over the past 24 hours and may be positioned for further price discovery. This momentum persists despite the asset being oversold, potentially supported by decreasing supply and buyback-driven demand.
Last week, HYPE achieved a striking 43% rally. Nevertheless, its momentum has visibly slowed down this week, demonstrated by consolidation near its recent peak throughout the previous four days.
Even so, market conditions continued to favor the bulls. HYPE advanced further to record a new all-time high (ATH) at $83.73.
At the time of writing, the HYPE price sat firmly in overbought territory. Notwithstanding this status, recent events indicate why the asset might withstand incoming profit-taking and potentially climb toward $90 or higher.
Hyperliquid Opens the Door for Buybacks, Which Could Sustain HYPE Price Bulls
Because HYPE was deeply overbought, investors have questioned whether a retracement is imminent. However, while buying momentum appeared to taper off, selling pressure remained constrained.
Furthermore, a recent announcement suggests that Hyperliquid itself could soon bolster demand. The network reportedly intends to launch a HYPE buyback and burn initiative alongside the activation of AQ1v2.
According to reports, the initiative will utilize yield generated through the USDC stablecoin. Consequently, the program will not only stimulate demand for HYPE crypto but also actively reduce its circulating supply via token burning.
While the buyback and burn initiative alone might not immediately generate enough demand or supply reduction to cause a dramatic market shift, it could sufficiently improve investor sentiment to deter selling pressure and encourage further upward demand.
Bulls may also maintain an optimistic outlook due to recent remarks from CME Group CEO Terry Duffy. He recently noted that the platform could play a vital role in America’s transition toward 24/7 market trading.
Duffy’s remarks also reinforced prior optimism generated by President Trump regarding Hyperliquid’s expansion into the United States. These developments have significantly shaped overall sentiment surrounding the HYPE price.
Wintermute Scales Back on Its HYPE Short Positions
This shift in market sentiment is plainly visible, with the most notable example coming from Wintermute. The algorithmic trading company has reportedly reduced its short exposure to HYPE from $211.5 million down to $80.4 million.
Wintermute’s choice to scale back its short positions corresponds with a growing likelihood of additional gains. Notably, at press time, the HYPE price remained roughly 49% below the historic high it reached 12 months ago.
Institutional capital inflows have additionally supported bullish confidence. HYPE exchange-traded funds (ETFs) recorded $13.2 million in inflows across Monday and Tuesday, surpassing the institutional activity tracked during last week’s aggressive price surge.
The rise in HYPE ETF inflows near the local peak highlights strong institutional confidence. Large institutions are unlikely to buy unless they remain convinced that the HYPE crypto can extend its rally beyond current price levels.
Even with these bullish indicators, whale order flow data suggested the market was bracing for a minor pullback. Certain whales began securing short-term profits as market uncertainty increased within the overbought zone.
Frequently Asked Questions
Why might the HYPE price reach $90?
The HYPE price could target $90 due to potential supply reduction and buyback-driven demand following the activation of AQAv2.
What is Hyperliquid’s buyback and burn program?
Hyperliquid plans to use yield earned through USDC to buy back and burn HYPE tokens, reducing supply and supporting demand.
How has Wintermute reacted to recent HYPE price trends?
Wintermute has scaled back its HYPE short exposure significantly, lowering it from $211.5 million to $80.4 million.
What are institutional investors doing with HYPE?
HYPE ETFs recorded $13.2 million in inflows on Monday and Tuesday, signaling continued institutional confidence near local price highs.
