First Inclusion in US ETF…Hyperliquid (HYPE) Soared to $87!

▲ Hyperliquid (HYPE)/AI Generated Image ©

Hyperliquid (HYPE) soared to an all-time high after being included for the first time in a US-listed cryptocurrency ETF, but the unlocking of nearly $800 million worth of tokens has emerged as the biggest test for its upward momentum.

According to cryptocurrency market data aggregator CoinMarketCap on September 4 (local time), Hyperliquid rose 7.36% over 24 hours to $87.61, outperforming the broader cryptocurrency market's bullish trend. The price is testing its all-time high range of $87-88.

The most direct driver for the surge is its inclusion in the Hashdex Nasdaq Crypto Index ETF (NCIQ). HYPE was allocated a 3.4% weighting in the ETF, making it the fifth-largest holding. The symbolic significance of being included in a regulated US product for the first time, along with direct buying demand from ETF portfolio rebalancing, fueled the price increase.

The macroeconomic environment and the company's plan to acquire treasury assets also contributed to the upward trend. The overall cryptocurrency market rose 4.93% after US Federal Reserve (Fed) Governor Christopher Waller hinted at the possibility of an interest rate freeze. Additionally, Hyperliquid Strategies expanded its equity financing limit to $2.5 billion for purchasing HYPE as a treasury asset, increasing expectations for sustained demand.

However, the scheduled large-scale token unlock on September 6 is a variable threatening the short-term upward trend. Approximately 9.92 million HYPE tokens, valued at around $797 million, are expected to be released into the market. If the selling pressure from the unlocked tokens is not absorbed by demand from ETFs and corporate purchases, the $85 support level could be shaken, and if that price is lost, a correction down to $80 is possible.

Conversely, if the price settles above $87 with sufficient trading volume, the next target is $90. The market is watching the trading volume and order book liquidity around $87 over the next 24-48 hours. The US August Consumer Price Index (CPI), to be announced on September 11, is also a variable that will influence the Fed's interest rate outlook and cryptocurrency investment sentiment. The key to further upside is whether the positive news of ETF inclusion can overcome the supply shock.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*