HYPE slid 8% from its local highs on Thursday after three prominent crypto investment firms – Multicoin Capital, Selini Capital, and Galaxy Digital – queued nearly $150 million worth of the token for withdrawal. The move was reported by CoinTelegraph and quickly rippled through the market.
The $150 million figure represents a large chunk of HYPE's circulating supply. All three funds are well-known institutional players, and their decision to queue locked tokens for withdrawal is widely seen as a bearish indicator. Traders rushed to sell, pushing the token down sharply before it recovered some of the losses.
Why would funds queue tokens for withdrawal? In the Hyperliquid ecosystem, some tokens are locked under vesting or staking arrangements. Queuing for withdrawal means the holder has submitted a request to release those locked tokens. It does not guarantee immediate release – the protocol's schedule determines when the tokens actually become available. But the intent is clear: these funds want to move their positions.
Multicoin Capital, Selini Capital, and Galaxy Digital have not publicly commented on the reason. It could be a routine portfolio rebalancing, a shift in strategy, or a response to market conditions. Whatever the motive, the market is pricing in a higher risk of selling pressure down the line.
HYPE had been trading near recent highs before the news broke. The token is the native asset of Hyperliquid, a decentralized exchange that has attracted significant volume and liquidity. Institutional interest in HYPE has been strong, making the sudden withdrawal queue notable.
The immediate price drop was sharp but not catastrophic – an 8% decline is large for a single news event but not a crash. The token's recovery suggests some buyers stepped in to absorb the selling. Still, the overhang of queued withdrawals could cap upside momentum until the release schedule becomes clearer.
For now, the next watch point is the actual execution of those withdrawals. If the tokens are released and hit the open market, selling pressure could intensify. If the requests are canceled or spread out over a long vesting period, the impact may fade. Traders will also eye any official statements from the funds involved.
Three crypto funds queue $150M of locked HYPE for withdrawal as price falls 8%
HYPE token dropped 8% after major crypto funds queued nearly $150 million worth of tokens for withdrawal. Institutional selling pressure weighs on HYPE's short-term price outlook.