Hyperliquid price corrects, BTC dips below $60K, Kalshi sues Illinois over regulations, and Abracadabra launches emergency measures to fix MIM depeg. Market sentiment is at extreme fear as BTC hits two-week lows. The crypto market is currently facing severe macro headwinds. The U.S. dollar continues to strengthen, while the Federal Reserve has shown no clear sign of softening its hawkish policy stance. This has placed significant pressure on global risk assets. Volatility in U.S. equities has also increased. Investors are closely watching the upcoming Personal Consumption Expenditures Price Index, as well as forward earnings guidance from major technology companies such as Micron. Therefore, risk-off sentiment has spread across the broader financial market. Although the market continues to follow the progress of the U.S.-Iran peace agreement, the geopolitical update has offered limited support for risk assets. It has not meaningfully eased the cautious tone among investors. Against this macro backdrop, crypto market sentiment has fallen into extreme fear. The Fear and Greed Index dropped to 12, showing that sentiment across the crypto market remains deeply negative. Bitcoin is under clear downside pressure. The price briefly fell below the $60K mark, showing that selling pressure continues to dominate short-term market action. 

Data shows that U.S. spot Bitcoin ETFs recorded a total net outflow of $6.4 billion over the past 30 days. This marks the largest monthly outflow on record and reflects stronger risk aversion among institutional investors. Ethereum has also remained weak. The price is fluctuating near $1,600. If this support level is lost, the technical structure may face further downside risk toward $1,200. Recent layoffs at the Ethereum Foundation and weaker on-chain demand have also weighed on market confidence. Across the broader market, data shows a large wave of deleveraging over the past 24 hours. Total liquidations reached $988 million, with long liquidations accounting for the majority. This indicates that highly leveraged long positions were heavily flushed out during the market pullback.

Source: Alternative

Key News Highlights:

Hyperliquid (HYPE) Pulls Back From Record High as Market Watches Key Support Zone

Hyperliquid’s native token HYPE has shown weaker performance recently. The price has pulled back by about 22% from its all-time high near $76, putting its broader uptrend under a key market test. On-chain data shows that spot cumulative volume delta, or CVD, has improved from earlier lows. This suggests that selling pressure has eased compared with the initial stage of the correction. However, the overall reading remains negative. This means market buying power is still not strong enough to fully absorb continued sell-side pressure. From a technical perspective, HYPE is now testing its 50-day exponential moving average. The $50 to $54 range is viewed as the most important lower support zone. If the price holds this area, it could help preserve the upward structure formed since the beginning of the year. However, a daily close below $53 may suggest a structural shift in the market trend. Traders are also showing a more cautious attitude toward derivatives exposure. Open interest and derivatives CVD have both declined, which suggests the market is now in a phase of deleveraging and observation. Going forward, market volume around this key support zone will be an important signal for assessing whether the correction is nearing exhaustion.

Bitcoin Falls Below $60K as Traders Watch for a Relief Bounce

Bitcoin came under significant downside pressure on Wednesday. The price fell below the $60K psychological level for the first time since mid-June and reached its lowest point in two weeks. This raised concerns about the possibility of a deeper correction. Despite the weak short-term price action, some traders still expect a relief bounce based on technical chart structures. Their target area is around $70K, while they continue to view the current structure as a range-bound market. On the macro side, recent discussions around the U.S.-Iran peace agreement have not provided a clear boost to risk assets. U.S. equities were largely flat after the market opened, showing that investors still prefer a more defensive stance. The market is also digesting upcoming macroeconomic data, including the Personal Consumption Expenditures Price Index. These factors have limited the short-term rebound space for the crypto market. Many analysts believe Bitcoin may continue to consolidate within the current price range in the near term. Traders are closely watching whether the price can break through key resistance levels. If Bitcoin fails to regain and hold above $60K, selling pressure may further test the lower support structure.

Kalshi Sues Illinois Officials Over New Prediction Market Rules

Prediction market platform Kalshi has filed a lawsuit in U.S. federal court against Illinois state officials. The company is challenging a newly passed state law that could affect its platform operations. In the filing, Kalshi stated that the new Illinois law seeks to strictly restrict sports event contracts offered on its platform. The company argues that this would seriously harm its commercial interests and conflict with the uniform regulatory framework of the U.S. Commodity Futures Trading Commission, or CFTC, for prediction markets. Kalshi emphasized that complying with the state law would create high compliance costs and complex technical restrictions. The company also argued that the requirements interfere with the authority of federal regulators. The new provision in the Illinois budget package is set to take effect on July 1. Kalshi said it may suffer irreparable harm if it does not take legal action before the rule becomes effective. This case reflects the ongoing legal conflict between federal and state regulators over the jurisdiction of sports betting and prediction markets. Some market observers expect these disputes over the operating status of prediction market platforms to eventually reach the U.S. Supreme Court.

Abracadabra Takes Emergency Action as MIM Stablecoin Depeg Deepens

Decentralized finance lending protocol Abracadabra has announced emergency measures after its stablecoin Magic Internet Money, or MIM, suffered a severe depeg. The stablecoin recently dropped sharply and once fell to $0.49, far below its intended $1 peg. To stabilize market confidence and support the peg recovery, the protocol team said it will immediately raise interest rates across all collateral pools, known as Cauldrons. The move is designed to encourage borrowers to repay debt and reduce the outstanding supply of MIM. Abracadabra explained that the current depeg was driven by tighter market liquidity and the broader pullback across DeFi. By increasing borrowing costs, the protocol aims to encourage deleveraging across lending positions and rebalance the market structure. MIM currently has a circulating supply of about $104 million. Although the protocol previously attempted to support liquidity by injecting funds into liquidity pools, the effect has been limited. The team stated that its top priority is to restore market confidence in the stablecoin’s peg mechanism. It will also continue to monitor the balance of liquidity pools. Users were reminded to stay aware of the potential risks of holding collateral assets during the current period of market volatility.

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