Major traders on Hyperliquid have been accumulating long positions in bitcoin for months, and recent price movements are starting to reflect this trend. According to Glassnode data, the largest traders on the on-chain perpetual futures exchange shifted from a net short to a net long position in early March and have maintained this stance, with the long bias growing stronger throughout April.
This shift coincides with bitcoin's steady rise from the mid-$60,000s in February to nearly $80,000. Hyperliquid has become the go-to platform for large traders, and their long-term investment strategies often precede spot price movements by days or weeks.
The recent flip to a net long position in early March preceded the price recovery, and current positioning is the most aggressive long stance on record. Meanwhile, bitcoin perpetual swap funding across major exchanges remains negative at -0.13% on a seven-day basis, indicating that short sellers are paying long investors to maintain their positions.
This negative funding has persisted 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 positioning by Hyperliquid's major traders 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 advance since 2024. The scheduled talks between Iran and the US did not take place over the weekend, and Treasury yields declined 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 Hyperliquid's long positions will become clearer in the coming days.