NEAR Protocol (NEAR) Plunges 17% Following Arthur Hayes' Major Position Exit

Key Highlights

Table of Contents

NEAR Protocol experienced a sharp 17% decline following Arthur Hayes’ announcement that he liquidated his complete holdings in NEAR and Hyperliquid (HYPE).
The BitMEX co-founder pointed to escalating energy costs from the Iran conflict, anticipated AI company listings before Q3, and macroeconomic timing concerns as rationale for his exit.
Blockchain analytics revealed Hayes offloaded 247,334 HYPE tokens valued at approximately $18 million, while his NEAR sale volume remains unreported.
NEAR futures open interest contracted by more than 21% to $543 million, indicating traders are liquidating positions rather than establishing fresh entries.
Critical support for NEAR rests at the $2.00–$2.01 range, with secondary support emerging near $1.73 should the primary level fail.

NEAR Protocol experienced a devastating 17% downturn on June 4, 2026, marking it as among the day’s most significant underperformers. The precipitous decline was primarily catalyzed by revelations that Arthur Hayes, the co-founder of cryptocurrency exchange BitMEX, had completely liquidated his holdings in both NEAR and Hyperliquid.

Hayes disclosed the divestment publicly, outlining three primary motivations: escalating energy expenses connected to the Iran conflict, three substantial AI firm initial public offerings anticipated before the third quarter begins, and concerns that President Donald Trump might adopt an adversarial stance toward artificial intelligence. He indicated that comprehensive reasoning would be detailed in an upcoming piece titled “Reality Test,” scheduled for release the subsequent Tuesday.

Blockchain analytics platform Lookonchain verified that Hayes disposed of 247,334 HYPE tokens for approximately $18.02 million. The precise quantity of NEAR he liquidated remains undisclosed, though the public declaration alone proved sufficient to undermine market confidence in the asset.

Hayes had formerly projected that HYPE could achieve $150 valuations. His choice to withdraw suggests a pivot toward more conservative positioning following a robust market rally. Responding to a community member, he noted, “I’ll be back,” implying the departure represents a temporary strategic maneuver rather than a permanent withdrawal.

I just dumped my entire $HYPE and $NEAR position, I will explain why in my essay "Reality Test" dropping next Tuesday.
TLDR:
– Higher energy prices due to Iran war and inventory restocking
– 3 Mega AI IPOs between now and early Q3
– Prediction that Trump goes anti-AI to win…
— Arthur Hayes (@CryptoHayes) June 4, 2026

Futures Metrics Reveal Growing Caution

NEAR futures trading volume surged beyond $2.8 billion during the selloff day, yet open interest contracted by over 21% to approximately $543 million. This dynamic — elevated volume accompanied by declining open interest — generally indicates traders are unwinding leveraged positions rather than initiating new exposure.

This pattern of market behavior suggests a broader flight to safety across the derivatives landscape, extending beyond just Hayes-related selling pressure.

From a technical perspective, NEAR had been showing weakness previously. The token encountered resistance near the $3.00–$3.10 threshold before reversing course. It subsequently breached short-term moving average indicators, placing bullish traders in a defensive posture.

Critical Price Zone Under Watch for NEAR

At press time, NEAR was exchanging hands around $2.05, representing approximately a 12.8% decline. The $2.00–$2.01 territory now represents the critical threshold for near-term market participants.