Institutions Trigger HBAR's 6% Drop Amid Regulatory Uncertainty

HBAR, the native token of Hedera Hashgraph, dropped 6% on October 10, 2025, amid a surge in institutional selling that drove trading volume to 262.49 million in the final hour of the session-six times the average volume for the period. The sharp decline followed a coordinated selloff by institutional investors, breaking through key support levels between $0.21 and $0.22 before stabilizing as market activity slowed in the closing minutes. The price action marked a reversal from midday gains near $0.22, with institutional traders initiating broad-based liquidation efforts.

Technical analysis highlighted the breach of multiple short-term support zones, with the cryptocurrency stabilizing only as trading activity ceased. Analysts attributed the selloff to potential portfolio rebalancing by institutions, possibly in anticipation of regulatory developments. The final hour of trading saw the most significant liquidation activity between 3:30 PM and 3:35 PM, with corporate trading volumes spiking to 12.80 million and 16.90 million units, respectively. Price action fell from $0.21 to a session low of $0.21 before a brief recovery attempt to $0.21 by 3:44 PM failed. Institutional trading activity ceased entirely in the final four minutes of the session, suggesting temporary liquidity constraints or trading desk closures.

The broader market context was marked by heightened volatility, with the U.S. government shutdown delaying regulatory approvals for ETFs, including potential spot HBAR ETFs. This uncertainty contributed to institutional caution, as corporate treasuries remained hesitant to increase exposure to digital assets. The selloff in HBAR mirrored wider market capitulation, with cryptocurrencies broadly reacting to macroeconomic pressures and regulatory uncertainty.

HBAR's price action also reflected its role in the broader crypto ecosystem, where institutional interest and regulatory milestones are critical drivers. Recent months had seen HBAR rally on institutional adoption, including partnerships with major financial institutions and participation in high-profile panels with entities like SWIFT and the Federal Reserve. However, the recent decline underscored the token's susceptibility to large-scale selling by institutional actors, particularly in a regulatory vacuum.

The surge in trading volume and price deterioration highlighted the token's vulnerability to liquidity constraints during periods of intense selling pressure. Analysts noted that the absence of significant buying interest at higher price levels-such as the $0.22-$0.22 resistance zone-indicated a lack of conviction among institutional buyers. The failure to hold above $0.22 late in the session further signaled deteriorating technical strength, with the token now facing a critical test of its $0.21 support level.

HBAR's performance serves as a barometer for institutional sentiment in the crypto market, where regulatory clarity and enterprise adoption are increasingly intertwined. The token's recent volatility, while concerning for short-term traders, may also reflect its position as a key player in the convergence of traditional finance and blockchain technology.