For two months, major traders on Hyperliquid have been establishing a long position in bitcoin, and the price chart is now beginning 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 ever since, with the long bias expanding throughout April. This shift coincides with bitcoin's gradual ascent from the mid-$60,000 range in February to nearly $80,000 earlier this week. Hyperliquid has become the preferred on-chain platform for large position traders over the past year, and a sustained long bias from this group often precedes spot bitcoin price movements by days to weeks.

The early March shift to net long preceded the recovery from the mid-$60,000s, and the current positioning is the most aggressively long on record. Meanwhile, bitcoin perpetual swap funding across major exchanges remains at -0.13% on a seven-day basis, 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 from Hyperliquid whales creates a technical setup that can lead to short squeezes when spot prices rise. In other news, the S&P 500 closed at a record high on Friday, marking its longest weekly advance since 2024. However, the scheduled talks between Iran and the US in Pakistan over the weekend did not take place, as President Donald Trump canceled his delegation's trip after the Iranian foreign minister left the country before the US group's arrival.

Additionally, Treasury yields dropped following the Justice Department's closure of 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.