HYPE Token Tanks 7%—Lion Group’s $600M Hyperliquid Treasury Fails to Impress Market
Another day, another crypto 'game-changer' that traders shrug at.
Lion Group's nine-figure treasury announcement—meant to signal stability—somehow coincided with HYPE's 7% nosedive. Because nothing says 'confidence' like panic selling on good news.
The irony? A $600M warchest now looks more like a $600M question mark. Traders clearly aren't buying the hype (pun brutally intended).
Pro tip: In crypto, even 'bullish' fundamentals can't outrun weak hands and shorter attention spans than a TikTok goldfish.
HYPE sees bearish pressure despite Lion Group's $600 million Hyperliquid treasury bet
Nasdaq-listed trading company Lion Group Holding secured a $600 million facility from New York-based investment firm ATW Partners to build a HYPE treasury reserve, the firm announced on Wednesday. This WOULD make Lion Group the largest treasury holder of HYPE.
The firm intends to purchase HYPE as its primary reserve asset but will also invest in "next-generation layer-1s treasury reserve," including solana (SOL) and Sui (SUI).
"We view protocols like HYPE, with decentralized sequencing, as foundational to building scalable DeFi systems. We may also allocate to Solana, a leader in consumer-facing applications, and Sui, a performant, composable layer-1," said Wilson Wang, CEO of LGHL.
The company stated that the first closing of $10.6 million of the capital will be released by Friday. Lion Group also revealed that it partnered with BitGo to serve as the custodian of its assets. Although Lion Group's previous crypto operations are unclear, it noted that the push for a strategic reserve is a "relaunch of crypto operations."
The announcement comes after Eyenovia revealed a $50 million HYPE treasury strategy on Tuesday.
HYPE dropped over 7% on Thursday, stretching its weekly loss to 14% despite the treasury announcements. The altcoin could decline to the $30 support level after moving below the lower boundary of a key channel.
HYPE/USDT daily chart
The Relative Strength Index (RSI) is testing its neutral level, while the Stochastic Oscillator (Stoch) is testing the oversold region. A successful crossover below in both indicators will accelerate the bearish momentum.
The bearish pressure comes amid sustained Middle East war tension weighing on the crypto market.
