For two consecutive months, the biggest players on Hyperliquid have been accumulating long positions in bitcoin, and the price trend is starting to reflect this. According to data from Glassnode, the on-chain perpetual futures exchange saw a significant shift in whale positioning from net short to net long in early March, with this long bias intensifying throughout April. This development coincides with bitcoin's steady rise from the mid-$60,000 range in February to nearly $80,000 earlier this week. Notably, 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 net long 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 across major exchanges remains negative, sitting at -0.13% on a seven-day basis, 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 from 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 advance since 2024. Additionally, the recent talks between Iran and the US did not take place as scheduled, while Treasury yields dropped following the Justice Department's decision to close its 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.