Whales Boost BTC Longs on Hyperliquid as Funding Turns Negative
Large traders on Hyperliquid have flipped Bitcoin (BTC) positions from short to long since early March, according to Glassnode data. This shift has become the platform’s strongest long accumulation on record. BTC was around $60,000 in February when the change began, and it has since climbed to near $80,000.
Derivatives signals add to the bullish setup. Coinglass shows BTC perpetuals with a 7-day average funding rate of -0.13%, and negative funding has persisted for about 47 days. That typically means short sellers are paying long holders, and extended negative funding can increase the odds of a short squeeze if BTC keeps rising.
The article also links the move to broader macro and market sentiment: the U.S. S&P 500 hit an all-time high and posted its longest weekly rally of 2024, while U.S. Treasury yields fell after the DOJ ended an investigation involving Jerome Powell. Separately, U.S.-Iran talks were delayed/cancelled, adding uncertainty.
Trader takeaway: with whale-driven BTC long buildup on Hyperliquid plus prolonged negative BTC funding, momentum could stay supported in the short term, though the same conditions can also make rallies more “squeeze-prone” and volatile.
Bullish
The news points to a constructive setup for BTC. First, Glassnode data says large traders on Hyperliquid switched from shorts to longs in early March, with the strongest long accumulation ever for the venue. When whales add long exposure as price climbs (from ~$60k to ~$80k), spot and broader sentiment can follow with a lag.
Second, persistent negative BTC perpetual funding (about -0.13% on a 7-day average for ~47 days) suggests the derivatives market has been skewed against shorts. If price continues higher, the “paying” dynamic can force more shorts to close, mechanically fueling further demand—an archetypal short-squeeze trigger.
Macro backdrop (S&P 500 at record highs, lower Treasury yields) generally supports risk appetite, which can help BTC sustain uptrends. The geopolitical uncertainty around US–Iran talks adds risk, but the immediate trading implication is still momentum-positive given the positioning and funding metrics.
Short term: volatility can rise, but downside may be harder while funding stays negative and whale longs remain elevated. Long term: if the macro/risk mood deteriorates, the same crowded long setup can reverse quickly; however, the current signals favor continued upside attempts rather than immediate mean reversion.