Hyperliquid News Today: "HYPE Soars 12% as Altcoins Crumble in Bitcoin-Dominated Market"

A Whale Going Long on Bitcoin with High Leverage and HYPE

Bitcoin's dominance in the cryptocurrency market has surged to 59% as investors increasingly favor the benchmark asset over volatile altcoins, according to CoinMarketCap data and CoinDesk's Daybook Americas. This shift reflects deteriorating sentiment across alternative cryptocurrencies, with tokens such as Fetch.ai (FET), 2Z, BONK, and WIF shedding over 50% of their value in the past three months. The altcoin market's struggles were exacerbated by a liquidity crisis earlier this month, as a sharp sell-off erased order book depth and triggered a cascade of liquidations, the Daybook noted.

Derivatives positioning highlights growing caution among traders. Bitcoin's 30-day implied volatility, measured by Volmex's BVIV index, has eased to 45% from a peak of 52% on October 10, signaling a partial unwinding of market anxiety, according to the Daybook. Meanwhile, the seven-day volatility risk premium (VRP) on Deribit's BTC options has turned negative, a sign of stabilizing conditions. Dealers are also building gamma exposure between $112,000 and $120,000 strike prices, creating a buffer against sharp price swings in that range. Despite these signs of calm, put options remain more expensive than calls across all tenors, underscoring persistent bearish sentiment.

While Bitcoin consolidates between $100,000 and $126,000, a separate story has emerged in the altcoin space: Hyperliquid's native token, HYPE, surged 12% on October 23, according to a Yahoo Finance report. The rally lifted HYPE to $38.92, breaking above critical support levels and testing a key weekly resistance. Trading volumes for HYPE futures spiked 20% to $690 million, while open interest surged to $1.55 billion, reflecting renewed bullish momentum.

Hyperliquid Strategies, the firm behind the exchange, filed with the U.S. Securities and Exchange Commission to raise up to $1 billion through a new equity offering. The capital will fund corporate operations and potential token purchases, aiming to strengthen Hyperliquid's balance sheet and infrastructure. The S-1 filing details a committed equity facility with Chardan Capital Markets, which could issue up to 160 million shares, the Yahoo Finance report added. This move follows Hyperliquid's recent HIP-3 upgrade, designed to optimize perpetual trading markets and enhance deployment efficiency.

The HYPE rally contrasts with broader market weakness, as the altcoin season index dipped below 25/100—its lowest level in 90 days—indicating a return to "bitcoin season," the Daybook observed. However, Hyperliquid's strategic accumulation plan has injected optimism into a sector otherwise defined by speculative selling. Analysts note that HYPE's price action could mirror its all-time high of $60 if it breaks out of its descending channel pattern, according to the Yahoo Finance coverage.