Bitcoin Investors with Large Holdings Increase Long-Term Investments as Funding Remains Strongly Negative

For two months, the largest traders on Hyperliquid have been building a long-term position in bitcoin, and the price chart is starting to reflect this trend. According to Glassnode data, the largest traders on Hyperliquid, a futures exchange, shifted from a net short to a net long position in early March and have maintained this position ever since, with the size of their long-term investments increasing throughout April. This shift coincides with the price of bitcoin increasing from the mid-$60,000s in February to nearly $80,000 earlier this week. Hyperliquid has become the preferred platform for large traders over the past year, and a sustained long-term investment bias from these traders tends to precede spot bitcoin price movements by several days to weeks. The shift to a net long position in early March preceded the recovery from the mid-$60,000s, and the current positioning is the most aggressively long it has been. The funding rate for bitcoin perpetual swaps across major exchanges is currently -0.13% on a seven-day basis, according to Coinglass, indicating that short sellers are paying long-term investors to maintain their positions. This negative funding rate has been in place for approximately 47 consecutive days, one of the longest periods of bearish derivatives positioning on record. The combination of sustained negative funding and aggressive long-term investments by Hyperliquid traders is a technical setup that can lead to short squeezes when spot prices rise. In traditional finance, the S&P 500 closed at a record high on Friday, marking its longest weekly advance since 2024. Meanwhile, talks between Iran and the US did not take place in Pakistan over the weekend. The cancellation of the talks and other global events may impact the Hyperliquid long positions, and their effects will become apparent in the coming hours and days.