Recent trends on the Hyperliquid exchange indicate a significant shift in market sentiment among major traders regarding Bitcoin. Over the past two months, these traders have steadily built a long position in Bitcoin, which has recently started to favor them as prices begin to rise. According to data from Glassnode, whale investors on Hyperliquid transitioned from a net short to a net long position in early March and have maintained that stance throughout April.
This shift occurred as Bitcoin prices increased from the mid-$60,000s in February to nearly $80,000 earlier this week. Hyperliquid has emerged as the preferred on-chain exchange for substantial trading positions, with the long bias from these whales often influencing Bitcoin’s spot price movement days or even weeks in advance.
The positioning data reveals that the aggressive long interest in Bitcoin has reached its highest levels recorded, suggesting a robust bullish sentiment among traders on Hyperliquid. This trend has been complemented by negative perpetual swap funding across major exchanges, currently at -0.13% over a seven-day period, indicating that short sellers are paying longs to maintain their positions. This sustained negative funding, lasting for approximately 47 days, is one of the longest periods of bearish positioning seen in the market.
Such a combination of negative funding and strong long positions from Hyperliquid whales sets the backdrop for potential short squeezes, especially if Bitcoin’s spot price continues to rise.
In other markets, the S&P 500 reached a record high on Friday, marking its longest weekly advance since 2024. Meanwhile, political developments unfolded in Pakistan related to U.S.-Iran communications. President Trump canceled a planned delegation’s trip to Islamabad after the Iranian foreign minister departed the country before U.S. officials could even set out.
Additionally, Treasury yields experienced a decline as the Justice Department concluded its investigation into Federal Reserve Chair Jerome Powell, potentially paving the way for Kevin Warsh’s nomination as the next Fed chair.
With these various market influences in play, the implications for the Hyperliquid long positions will likely become clearer in the hours and days ahead.
