Hyperliquid Whales Bet Against Bitcoin But Institutions Keep Buying

Bitcoin (BTC) after recording a 1.59% gain last week, took a sharp turn from the past 24 hours. During this period, the crypto lost nearly 3% of its value but again raised by 0.2%. This sudden fluctuation has caught the attention of traders and investors alike. AMBCrypto’s analysis suggests that this gain might be temporary, with Hyperliquid whales taking control of the derivatives market and positioning themselves for a negative net BTC outcome.

The question now is, can institutional investors step in and change the direction?

Hyperliquid Whales Betting on a Major Drop

Data from several crypto platforms reveals a surge in derivative positions on Hyperliquid a platform that keeps track of large traders’ positions. These positions climbed to a total of $1.62 billion. Out of this, short positions accounted for a significant 54.15%, totalling $876 million. Generally, when short positions dominate, it signals bearish sentiment and a lack of strong interest from leading market players. Such conditions often lead to major market corrections.

Further numbers show that traders who bet on Bitcoin are currently facing losses. Long traders are down by $45.5 million, while short traders have pocketed $125.75 million within this period. In simple terms, selling has been more profitable recently, which explains Bitcoin’s decline over the past 24 hours.

Institutional Investors Keep Accumulating

Interestingly, while Hyperliquid whales are leaning towards selling, institutional investors are showing the opposite behaviour. They are actively purchasing Bitcoin, possibly with a long-term vision in mind. The netflows, which track inflows and outflows, show that investors have bought $165.7 million worth of BTC in just the last 24 hours.

This substantial inflow indicates a strong interest in Bitcoin. The Fund Market Premium, a key indicator that compares BTC prices on institutional investment platforms with the broader spot market, also confirms this buying activity. As of now, this metric sits above the neutral level of 0, highlighting continued institutional accumulation.

Additionally, this sentiment matches long-term holders’ behaviour. AMBCrypto found that the movement of assets held by long-term investors has slowed down over the last seven days. The Binary CDD (Coin Days Destroyed) reading stands at 0.285, which is close to 0. This shows more buying and holding activity, another sign of increasing confidence in the market from these holders.

The U.S. Investors Are Selling

However, not everyone is following the bullish trend. American investors aligning with Hyperliquid whales, currently engaging in selling. This is evident from the Coinbase premium, which has dropped to -0.04. A negative premium signals strong selling pressure. Since U.S. investors often influence Bitcoin’s long-term direction, continued selling from their side could push prices even lower. If U.S. investors set on selling BTC the growth will crumble and take time to rebound.

What Lies Ahead?

At this point, both bullish and bearish forces are at play. A clear shift in either direction will give more clarity on where Bitcoin is headed in the coming weeks and months. For now, all eyes remain on whether institutional investors can outweigh the pressure created by Hyperliquid whales and American sellers.