For two months, major traders on Hyperliquid have been building a significant long position in bitcoin, and recent price movements suggest their strategy may be paying off. According to Glassnode data, the largest perpetual traders on the platform shifted from a net short to a net long position in early March and have maintained this stance throughout April, with their long bias growing in size. This development coincides with bitcoin's gradual ascent from the mid-$60,000 range in February to nearly $80,000 earlier this week. Hyperliquid has become the go-to on-chain venue 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 shift to a net long position in early March preceded the recovery from the mid-$60,000s, and current positioning is the most aggressively long on record. Meanwhile, bitcoin perpetual swap funding across major exchanges remains negative, with shorts paying longs to maintain their positions. This negative funding has persisted for approximately 47 consecutive days, one of the longest bearish derivatives positioning periods on record. The combination of sustained negative funding and aggressive long positioning by 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, marking its longest weekly gain since 2024. The scheduled talks between Iran and the US over the weekend were canceled, while Treasury yields declined following the closure of the Justice Department's probe 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 Hyperliquid's long positions will become clearer in the coming hours and days.