For two months, the biggest traders on Hyperliquid have been accumulating long positions in bitcoin, with the price chart starting to reflect this trend. According to Glassnode data, the largest perpetual traders on the on-chain exchange have shifted from a net short to a net long position since early March, with the size of the long bias increasing throughout April.
This shift has coincided with bitcoin's gradual price increase from the mid-$60,000s in February to nearly $80,000 earlier this week. Notably, Hyperliquid has become the preferred platform for large traders over the past year, and a sustained long bias from this group often precedes spot bitcoin price movements by days or weeks. The recent flip to a net long position in early March preceded the recovery from the mid-$60,000s, with the current positioning being the most aggressively long on record. Meanwhile, bitcoin perpetual swap funding rates across major exchanges have remained negative, with shorts paying longs to maintain their positions, resulting in a seven-day basis of -0.13% according to Coinglass.
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 from Hyperliquid whales creates a technical setup that can lead to short squeezes when spot prices rise. In other news, the S&P 500 reached a record high on Friday, while the scheduled talks between Iran and the US did not take place. Additionally, Treasury yields decreased after the Justice Department closed 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.