Bitcoin Whales Accumulate Long Positions Amid Prolonged Negative Funding

Over the past two months, the largest traders on Hyperliquid have been consistently building their long positions in bitcoin, and the price trend is starting to reflect this. According to data from Glassnode, the whale positioning on Hyperliquid, a blockchain-based perpetual futures exchange, shifted from a net short to a net long position in early March and has remained so ever since, with the long bias intensifying throughout April. This shift coincides with bitcoin's gradual rise from the mid-$60,000 range in February to a recent high near $80,000. Hyperliquid has become the go-to platform for large traders over the past year, and a sustained long bias from this group often precedes spot bitcoin price movements by several days to weeks. The recent flip to a net long position in early March preceded the recovery from the mid-$60,000 range, and the current positioning is the most aggressively long on record. Meanwhile, the seven-day funding rate for bitcoin perpetual swaps across major exchanges stands at -0.13%, indicating that shorts are paying longs to maintain their positions. This negative funding has persisted for approximately 47 consecutive days, marking one of the longest periods of bearish derivatives positioning on record. The combination of sustained negative funding and aggressive long positioning by Hyperliquid whales sets the stage for potential short squeezes when spot prices break higher. In other news, the S&P 500 closed at a record high on Friday, capping its longest weekly gain since 2024. The weekend's scheduled talks between Iran and the US in Pakistan did not take place, as President Donald Trump canceled his delegation's trip after the Iranian foreign minister left the country. Additionally, Treasury yields dropped following the Justice Department's decision to close its investigation into Federal Reserve Chair Jerome Powell, potentially paving the way for Kevin Warsh's confirmation as the next Fed leader. The impact of these developments on the Hyperliquid long positions will become clearer in the coming hours and days.