Wall Street can’t ignore Hyperliquid now

May 29, 2026

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Arca CIO flags Strategy’s Bitcoin squeeze

Key points:

  • Arca CIO Jeff Dorman warned that Strategy’s preferred stock model has “gotten out of hand,” with roughly $15 billion to $15.5 billion in preferred securities tied to about $1.5 billion to $1.7 billion in annual dividend obligations.

  • STRC slipped below its $100 target price as Strategy’s cash reserves fell to about $871 million after a $1.5 billion convertible note repurchase.

News - Strategy’s Bitcoin strategy is facing a tougher question than whether BTC keeps rising. The real test now is whether its capital structure can keep funding the trade as cash reserves, preferred dividends, and investor confidence move against each other.

Arca CIO Jeff Dorman argued that Strategy’s preferred stock structure looked like a bet on a sharp Bitcoin rally. Instead, BTC was trading around $72,500 to $73,700, weakening the cushion behind a setup carrying heavy dividend commitments.

Cash coverage gets tighter - Strategy recently repurchased $1.5 billion of zero coupon convertible notes due 2029 for about $1.38 billion in cash. While that reduced debt, it also lowered cash reserves from around $2.25 billion to $871 million.

That balance may cover only about six months of estimated preferred dividend obligations, compared with the original goal of 24 months.

STRC loses its anchor - The pressure is also showing up in STRC, Strategy’s perpetual preferred security. STRC fell as low as $97.11 before closing at $98.57, raising concerns over whether it can remain an efficient capital-raising tool through at-the-market issuance.

The dilemma is sharp. Selling BTC could challenge Michael Saylor’s long-term thesis, while cutting dividends would hurt preferred holders. Strategy CEO Phong Le said the company may sell Bitcoin at some point, but intends to remain a net accumulator.

ICE CEO puts Hyperliquid on Wall Street’s radar

Key points:

  • ICE CEO Jeffrey Sprecher said Hyperliquid is “bigger than Nasdaq,” praised its 11-person team, and said incumbents cannot ignore it.

  • HYPE rallied nearly 10% after the remarks, while ICE pushed regulators for a “level playing field” around 24/7 onchain perpetual futures.

News - Hyperliquid’s rally carried a bigger message than token momentum. It came after one of Wall Street’s most influential exchange operators acknowledged that an 11-person onchain venue is forcing legacy markets to rethink how trading should work.

At Bernstein’s 42nd Annual Strategic Decisions Conference, Intercontinental Exchange (ICE) CEO Jeffrey Sprecher praised Hyperliquid’s team as highly skilled and said ICE has met with them multiple times to study its onchain perpetuals model. He also argued that regulators are restricting regulated exchanges from offering products that already exist offshore.

Why ICE is watching - The sharpest pressure point is 24/7 trading. Hyperliquid has offered oil derivatives during weekends when ICE’s traditional energy markets are closed, a gap that drew more attention during recent Middle East tensions.

That dynamic gives traders a venue for off-hours exposure, while regulated exchanges remain bound by existing market rules.

HYPE catches the bid - The market reaction was immediate. HYPE climbed nearly 10% to around $62, moving within 4% of its $64.44 all-time high and lifting Hyperliquid’s market value above $13.8 billion.

Still, the Nasdaq comparison needs context. Hyperliquid’s market value remains far below Nasdaq Inc.’s, but the platform dominates over 70% of the decentralized perpetual futures market. Its rise now puts a bigger question in front of regulators: adapt the rulebook for always-on markets, or keep watching crypto venues define the next trading standard first.

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Bitcoin ETFs flash buyer drought warning

Key points:

  • U.S. spot Bitcoin ETFs posted a record nine-day outflow streak, with investors pulling roughly $2.8 billion to $2.84 billion from the funds.

  • BlackRock’s IBIT led the withdrawals, while CryptoQuant data showed whale balances contracting and long-term holder supply hitting a record 15.8 million BTC.

News - Bitcoin’s latest pressure point is not only price weakness. It is the shrinking demand beneath it.

U.S. spot Bitcoin ETFs have now logged their longest withdrawal streak since launching in January 2024, with nine straight trading days of net outflows. The funds lost another $223 million on Thursday, extending total withdrawals to about $2.84 billion since May 15.

That streak topped the previous eight-day run from February 2025, although the earlier selloff still saw a larger $3.2 billion in total withdrawals.

IBIT leads the exit - BlackRock’s IBIT accounted for a major share of the pressure, losing roughly $2.04 billion during the streak. Its $527.8 million outflow on May 27 was its second-largest daily withdrawal on record, just below the $528.3 million outflow seen on January 30, 2025.

The broader pullback came as BTC fell from roughly $80,000 to the low-$73,000 area, with its market cap sliding below $1.5 trillion and pushing Bitcoin out of the world’s top 10 assets.

The real issue: Fewer new buyers - CryptoQuant’s data sharpened the concern. Whale balances are contracting at their fastest pace of 2026, dolphin balance growth has slowed, and short-term holder supply has dropped by about 2.2 million BTC since December.

Meanwhile, record long-term holder supply is not being read as pure conviction. CryptoQuant argued it reflects fewer new buyers, leaving more coins idle as Bitcoin competes with AI stocks, semiconductors, precious metals, and newer altcoin ETF flows.

Sui’s network stalls hit at the wrong time

Key points:

  • Sui suffered downtime for the second straight day after Thursday’s nearly six-hour outage, which the network attributed to a crash bug in its 1.72 release.

  • SUI fell 20% over the week, traded near $0.89, and remained more than 83% below its January 2025 all-time high of $5.35.

News - Sui’s back-to-back outage problem arrived at a rough moment for the network. The chain was already dealing with a steep token slide, fresh comparisons to earlier stalls, and rising security concerns around developer tooling.

On Thursday, Sui mainnet went offline for 5 hours and 55 minutes after a crash bug in the gas charging logic was introduced through the 1.72 release. A patch later brought the network back online, but the relief did not last long. By Friday, the team posted another network stall warning and said activity may be paused again.

Token weakness makes it worse - SUI was among the worst-performing top 100 crypto assets over the week, falling 20%. The token recently traded near $0.89, down more than 83% from its January 2025 peak of $5.35.

The selloff also followed a Thursday drop, when SUI briefly fell around 6.6% to $0.90 during the outage before recovering slightly to about $0.93.

Developers face a separate threat - Sui’s reliability concerns are not happening in isolation. Security researchers at Socket identified TrapDoor, a supply-chain campaign that planted more than 34 malicious packages across npm, PyPI, and Crates.io.

Some packages were disguised as Sui or Move build helpers, targeting developers for wallet files, SSH keys, GitHub tokens, cloud credentials, and browser data. For Sui, the timing adds another complication: the chain now has to address reliability questions while Sui and Move builders are among the developer groups facing fresh attack attempts.

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Crypto scams uncovered

  • Prediction markets just got their insider trading moment: A Google software engineer was charged for allegedly using confidential search-trend data to make over $1.2 million on Polymarket under the alias “AlphaRaccoon,” turning blockchain-based wagers into a new frontier for alleged insider abuse.

  • A crypto scam allegedly used “relationship” as the onboarding funnel: Two men were charged in a $13 million crypto fraud and money laundering case where victims were allegedly pulled into fake investment platforms after scammers built trust through online conversations.

  • The fake trading-room scam got an AI makeover: The SEC charged three alleged crypto trading platforms and four investment clubs with using social media ads, group chats, fake financial professionals, and promises of AI-generated investment tips to misappropriate $14 million from retail investors.

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Top 3 coins of the day

Injective (INJ)

Key points:

  • INJ advanced to $6.23 after reclaiming the $6.00 area, bringing price close to the Elliott Wave $6.37 extension.

  • MACD stayed positive, with the line at 0.148 above the signal line at 0.090, while volume reached 370.85K during the latest push.

What you should know:

INJ’s rally was not just a chart-led move. Binance.US launching INJ staking for U.S. users and Circle rolling out native USDC on Injective gave buyers two clear utility catalysts. On the chart, price climbed back above $6.00 and moved toward the $6.37 Elliott Wave extension, while MACD held bullish with a positive 0.058 histogram. Volume also rose to 370.85K, showing active participation behind the move. However, the rally is now pressing into a resistance zone rather than starting from a base. A break above $6.37 keeps $6.82 in focus, while $5.63, $5.40, and $5.18 are the pullback levels to monitor.

Hyperliquid (HYPE)

Key points:

  • HYPE hovered near $62.32 after failing to clear the $64 to $64.50 high zone, showing a pause rather than a fresh breakout.

  • Price remained above all MA Ribbon levels, while the Awesome Oscillator recovered to 0.838 and volume stood at 12.84K.

What you should know:

HYPE’s latest candles showed buyers defending a high-level range instead of chasing a clean breakout. Price stayed above the full MA Ribbon, with $60.45 and $59.95 forming the nearest trend-support area, while the wider ribbon levels at $52.52 and $47.17 kept the broader uptrend intact. The Awesome Oscillator recovered to 0.838, suggesting momentum had started to rebuild after a brief cooldown. However, volume came in at only 12.84K, so a push through $64 to $64.50 still needs stronger participation. The catalyst backdrop stayed strong after Coinbase became Hyperliquid’s official USDC treasury deployer, while ICE CEO Jeff Sprecher’s “bigger than Nasdaq” praise added institutional validation.

Bittensor (TAO)

Key points:

  • TAO dropped to $250.70 after sellers pushed it below the recent $257 to $263 range, with the latest candle closing near its low.

  • Price traded below the full MA Ribbon, while the Stochastic RSI stayed weak at 19.02 and 25.34, showing pressure had not yet reset into recovery.

What you should know:

TAO’s decline looked like a failed stabilization attempt rather than a routine pullback, as price slipped below the recent $257 to $263 range and remained under every MA Ribbon level. The nearest ribbon resistance is $267.90, followed by the wider $273.10 to $280.80 zone. Stochastic RSI stayed low, with the blue line at 19.02 below the orange line at 25.34, so momentum had not confirmed a rebound. Volume stood at 15.89K, reflecting active selling during the breakdown. The move also fit the broader de-risking from AI-focused altcoins, while Bittensor’s token inflation and elevated perpetual market pressure added sharper TAO-specific headwinds. Holding $248.90 to $250.70 is key, with $242.50 as the next lower support.

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