Hyperliquid Price Tumbles Under Institutional Selling Pressure
Hyperliquid's (HYPE) price has been trending lower after failing to reclaim its recent highs, with bearish momentum accelerating in recent weeks. The token has been facing pressure from a series of negative developments, including institutional selling and governance uncertainty.
The most immediate catalyst behind HYPE's decline is renewed institutional selling, with Bitwise transferring another 117,917 tokens worth roughly $7.05 million to Coinbase. This follows a series of similar exchange deposits over recent weeks, reinforcing concerns that one of Hyperliquid's largest institutional holders is continuing to reduce its exposure.
Market sentiment has also been dented by growing discussion around Hyperliquid's proposed HIP-3 upgrade, which would introduce optional KYC and allowlist functionality for deployers. While the proposal may ultimately broaden institutional adoption, the uncertainty surrounding its implementation has become another short-term headwind for HYPE.
The combination of these factors has amplified selling pressure at a time when market confidence was already fading. The token's price has remained trapped inside a well-defined descending channel, printing a sequence of lower highs and lower lows.