HYPE drops below $70 as retail demand weakens despite ETF inflows

Key takeaways

• Hyperliquid (HYPE) has fallen below $70, extending its losing streak as broader crypto market sentiment turns risk-off.
• Retail participation is weakening, with futures open interest declining and long liquidations dominating the derivatives market.

Hyperliquid (HYPE) continued to trade lower on Wednesday, slipping below the $70 level as cautious sentiment across the cryptocurrency market dampened retail participation.

The token has recorded three consecutive days of losses, reflecting growing uncertainty among short-term traders. Despite the pullback, institutional investors continue to show confidence, highlighting a divergence between retail and professional market participants.

Retail traders reduce exposure

Recent derivatives data points to weakening retail demand for HYPE. According to CoinGlass, Hyperliquid futures open interest (OI) declined by more than 2% over the past 24 hours to $2.80 billion, indicating that traders are either reducing leverage or closing p...