HYPE has encountered significant downward momentum, retracting 8% from its recent local peak. This sudden volatility follows news that prominent venture capital firms are preparing to offload substantial holdings.
Data reveals that major players, including Multicoin Capital, Selini Capital, and Galaxy Digital, have officially queued nearly $150 million in locked tokens for withdrawal. This massive influx of potential supply hitting the market has triggered investor anxiety regarding short-term price stability.
The move by these institutional heavyweights highlights the ongoing liquidity challenges often seen when early-stage lock-up periods expire. As these tokens move toward exchange wallets, the market is bracing for increased selling pressure.
Market participants are now closely monitoring how much of this liquidity will be dumped on the open market versus moved to private custody. For now, the sentiment surrounding HYPE remains cautious as traders assess the impact of these high-profile exits.
