Hyperliquid’s HYPE token traded near all-time highs on Monday, reaching $89 as renewed institutional interest drove demand. The rally was fueled by news that Bitwise had resumed buying for its crypto index funds, with HYPE receiving a significant allocation.
Bitwise ETF Demand
Bitwise Asset Management, one of the largest crypto index fund providers, resumed accumulation of HYPE after a brief pause. The buying is part of regular rebalancing for its Bitwise 10 Crypto Index Fund, which tracks the top 10 cryptocurrencies by market capitalization.
HYPE’s inclusion in the index reflects its growing market cap and liquidity. As the fund grows in assets under management, the automatic rebalancing creates consistent buy pressure for constituent tokens.
Token Burns Tighten Supply
Hyperliquid’s token burn mechanism has been actively reducing HYPE supply. Over the past month, approximately 2% of circulating supply has been burned, creating a deflationary dynamic that amplifies price movements.
The burn mechanism is tied to trading fees on the Hyperliquid perpetual futures exchange, meaning higher trading volumes directly reduce token supply.
Technical Setup
HYPE is approaching its previous all-time high of approximately $92. A breakout above this level could trigger significant momentum buying, particularly from algorithmic trading systems that use ATH breaks as signals.
However, resistance at the ATH is typically strong, as sellers who bought near the previous top may look to exit positions at breakeven.
What to Watch
- Whether HYPE can break above $92 resistance
- Bitwise fund flow data for continued buying
- Trading volume on Hyperliquid exchange
HYPE’s near-term trajectory will likely depend on whether institutional inflows continue and whether the broader crypto market remains supportive.