Hyperliuid dips below $70, but institutional demand remains high

Hyperliquid’s native token, HYPE, dropped below $70 on Thursday after delivering an 80% gain in May. The dip comes amid renewed weakness across the broader cryptocurrency market, where Bitcoin (BTC) slipped below $63,000 and sparked a wave of risk-off sentiment among investors.

A key catalyst behind HYPE’s recent surge has been rising institutional participation. Newly launched HYPE-focused exchange-traded funds (ETFs) attracted roughly $135 million in inflows last month, highlighting growing demand from professional investors and helping drive the token into price discovery territory.

While momentum remains firmly bullish, analysts caution that the rally has become increasingly stretched, even as long-term projections point toward a potential move above the $100 mark.

Capital rotates from Bitcoin ETFs to Hyperliquid products

Institutional flows reveal a stark contrast between Bitcoin and Hyperliquid investment products.

Bitcoin ETFs recorded $396.6 million in net outflows on Wednesday, extending cumulative withdrawals to $4.37 billion over the past 13 trading days. The trend suggests waning institutional appetite for the world’s larg...