Arthur Hayes dumps HYPE and NEAR, warns of market peak

Arthur Hayes, founder of BitMEX, is taking a drastic step by selling his entire HYPE and NEAR positions. The influential crypto analyst warns that the market may peak between now and September, prompting him to secure profits. Next week, Hayes will publish an extensive essay titled ‘Reality Test’ in which he details his reasons.

Hayes cites several factors that have determined his decision. He sees higher energy prices due to the war in Iran and the replenishment of inventories as catalysts. Additionally, he expects three major AI IPOs between now and the start of the third quarter. A striking prediction is that President Trump might turn against AI to attract Republicans for the midterm elections.

Why Hayes Is Taking Profits Now

The timing of this move shows how Hayes reads market sentiment. By reducing his positions early, he wants to avoid being caught in a potential correction. Hayes emphasises that he can more easily ‘step back two paces and re-enter’ without worrying about his current positions.

HYPE and NEAR are both projects heavily dependent on AI and technological growth. With the predicted headwinds in the form of possible Trump policies and higher energy costs, Hayes seems convinced that current prices are an attractive moment to exit.

Broader Market Implications

Hayes’ move fits into a larger pattern of caution among major crypto investors. The combination of geopolitical tension, possible policy shifts, and an impressive number of upcoming technology company introductions suggests that volatility could increase. If major AI IPOs actually occur, this could divert capital away from crypto markets.

Currently, Hyperliquid is trading at $68,14. down 5.7% over the past 24 hours. These kinds of movements could be just the beginning of a broader market correction if Hayes’ analysis proves correct.