Bitcoin Whales Accumulate Long Positions Amid Prolonged Negative Funding

For two months, Hyperliquid's major traders have been establishing a long position in bitcoin, and the price trend is starting to reflect this. According to Glassnode data, the largest traders on Hyperliquid, a leading on-chain perpetual futures exchange, shifted from a net short to a net long position in early March and have maintained this stance ever since, with their long bias growing more pronounced throughout April. 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 emerged as the preferred platform for large traders over the past year, and a sustained long bias from these traders often precedes spot bitcoin price movements by several days to weeks. The early March shift to a net long position preceded the recovery from the mid-$60,000 range, and current positioning is the most aggressively long on record. Meanwhile, bitcoin perpetual swap funding across major exchanges remains negative, with a seven-day basis of -0.13% according to Coinglass, indicating that shorts are paying longs 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 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 advance since 2024. Additionally, the recent US-Iran talks in Pakistan were canceled, 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 hours and days.