HYPE Defies Market Carnage: Hyperliquid Price Rebounds After $96M Liquidation Shock

Bitcoin's derivatives market is undergoing a significant reset, with Binance's open interest dropping over 31% from its October peak as futures-led selling pressure diminishes. This decline follows a speculative surge in 2025, where open interest reached an all-time high of over $15 billion. CryptoQuant contributor Darkfost suggests that such a deleveraging phase often coincides with meaningful cycle lows, indicating a potential market bottom.

Bitcoin (BTC) has surged past the $96,000 mark this week, driven by significant inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) and a favorable U.S. Consumer Price Index (CPI) report, which alleviated inflation concerns. This price movement marks the end of a prolonged consolidation phase, leading to a wave of bearish liquidations as short sellers exited their positions.

Ether's price has been lagging despite strengthening fundamentals, as noted by Etherealize CEO Vivek Raman, who suggests that this gap may present a significant opportunity for investors by 2026.

A prominent Bitcoin trader, often referred to as a whale, has reported a remarkable $50 million gain from long positions in Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), underscoring the potential for significant profits in the volatile cryptocurrency market.

Hyperliquid's price has confirmed a failed auction setup, closing below key resistance levels and indicating a downside target of $19.70. This decline follows a trend of diminishing bullish trading volume, raising concerns about the cryptocurrency's stability.