Major traders on Hyperliquid have been accumulating long positions in bitcoin for the past two months, with recent price movements starting to reflect this trend. According to Glassnode data, the largest traders on the platform shifted from a net short to a net long position in early March, and have maintained this stance throughout April.
This shift coincides with bitcoin's gradual increase from the mid-$60,000 range in February to nearly $80,000 earlier this week. Hyperliquid has become the go-to 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 recent flip to a net long position in early March preceded the recovery from the mid-$60,000 range, with current positioning being the most aggressively long on record. Meanwhile, bitcoin perpetual swap funding rates across major exchanges remain negative at -0.13% on a seven-day basis, indicating that shorts are paying longs to maintain their positions.
This negative funding rate 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. The scheduled talks between Iran and the US over the weekend did not take place, 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.