Bullish Wave Hits the Crypto Market
Cryptocurrency assets jumped yesterday to one of their best levels in months, driven by Bitcoin’s rise to its highest point since June and the announcement that U.S. President Donald Trump would hold a meeting with industry leaders.
During a press conference, Trump hinted at the possibility of bringing the decentralized exchange platform Hyperliquid into the U.S. market within a regulatory-compliant legal framework, noting that CFTC Chairman Michael Selig is working on the file, according to CNBC, as reported by Al Arabiya Business.
The comments ignited a strong rally in assets linked to the platform. Shares of Hyperliquid Strategies (PURR), the publicly listed company owning HYPE tokens, surged nearly 30% before market close, lifting its year-to-date gains to over 163%. Meanwhile, the HYPE token rose approximately 18%, approaching record levels, while shares of competitors such as Cboe Global Markets, Miami International, and CME Group declined.
David Shimis, CEO of Hyperliquid, stated that the company had been trying for some time to find a way to enter the United States, adding that Trump’s remarks signaled that the issue had become a political and regulatory priority.
Options trading on Hyperliquid also saw exceptional activity, with trading volume reaching nearly eight times the average of the past 30 days. The number of call options traded exceeded 120,000 contracts, compared to fewer than 8,000 put contracts.
Data showed purchases of approximately 45,000 call contracts against 29,000 put contracts, while insurance premiums exceeding $10 million were traded.
The largest trades occurred about half an hour after Trump’s remarks, when an investor bought 2,000 call contracts with an exercise price of $8, expiring in November and December, for approximately $510,000.
Trading activity preceding Trump’s comments by several hours raised widespread questions in the market. Nearly $2 million worth of call options were traded before 3 p.m., prior to the official release of the remarks.
In one prominent case, a trader spent approximately $65,000 at 11 a.m. to buy 719 call contracts with an exercise price of $8, expiring in mid-October, despite the contracts having only 67 open positions before the session began.
Following the subsequent rally, the value of these contracts rose from 90 cents per contract to $2.45, generating profits of approximately $111,000 within hours.
Denis Davit, founding partner at Milburn Dartmore, said these trades raised significant questions, adding sarcastically, “I hope those executing them have a strong justification.”
The wave of optimism extended to other digital assets, as trading volume in the iShares Bitcoin Trust (IBIT) exceeded 4.5 times its 30-day average, even before news of Hyperliquid broke.
Additionally, the BVIV index from Volmex Labs, which measures Bitcoin volatility, rose approximately 13% after hitting its lowest level of the year just days earlier.
Shares of Michael Saylor’s Strategy rose nearly 13%, while Coinbase shares climbed about 10%. However, both companies remain down approximately 30% year-to-date, amid Bitcoin’s worst relative performance against the S&P 500 since 2019.
Despite the enthusiasm sparked by Trump’s remarks, investors remain cautious, awaiting to see whether Hyperliquid’s success will translate into a sustained rally for Bitcoin and the broader cryptocurrency market.
Shemiss emphasized that the company’s balance sheet relies on only four key elements: holdings worth $2 billion in HYPE tokens, cash liquidity, shareholders’ equity, and deferred tax liabilities, stressing that the company has no debt or complex financing instruments.
It appears that the current controversy extends beyond Hyperliquid’s prospects in the United States to also include the striking timing of some major bets that preceded Trump’s statements—trades that could attract greater attention if regulators continue to closely monitor market movements.
