Bitcoin traders are closely watching the derivatives market after market observer CW identified $64,850 as the level that could change the balance between bullish and bearish positions on Hyperliquid.
According to the update, short-position holders currently remain in control. However, if Bitcoin climbs high enough to liquidate those short positions, long traders could quickly take over.
Liquidation Clusters Could Drive Price Swings
According to the recent Hyperliquid liquidation map, Bitcoin is trading around $59,896, with emphasis on the places where the leveraged trades are located.
The map shows that there is a significantly higher possibility of short liquidation above the current price compared to long liquidation below it. Such a difference implies that any significant price increase can lead to buying from shorts.
Source: X
It can be seen from the chart that short leverage liquidation is approaching 15,000, whereas the long leverage liquidation at the present price is around 1,200. Such a large difference indicates that traders are heavily leaning towards the downside.
A number of large short liquidations are seen from $64,000 to $67,000, while there is yet another concentration of liquidations between $73,000 and $76,000. In addition, there is a much larger pool of liquidity at around $106,000. This is due to the fact that liquidations provide liquidity for the trades.
In terms of the downside, it seems that liquidation is not very strong. Longs are distributed gradually from $47,000 to $30,000 and in just a couple of small clusters.
Therefore, although a decline may lead to sell-offs, the chain of liquidations will likely be shorter than it would have been if Bitcoin rallied above all the shorts.
Also Read: Circle CEO 2026 Blasts OUSD Consortium Model as Dismal
Institutional Money Continues Flowing Into Hyperliquid
While Bitcoin traders monitor liquidation levels, Hyperliquid’s native token HYPE is attracting growing institutional attention through spot exchange-traded funds.
According to Crypto Patel, there were $164.06 million in net inflows into HYPE Spot ETFs in June. Data in the chart reveals that total net assets increased to $325.29 million, which is approximately twice as much as the total amount ($164.34 million) in May.
Source: X
The net inflows occurred despite the fact that HYPE had a trading value of $65.46, suggesting that the price levels were lower compared to those observed in the prior month.
The difference between the decrease in the price level and the increase in ETFs suggests that major players have been accumulating their positions rather than reducing them.
What Will Happen Next?
Bitcoin has reached the level of $64,850 once again. In case of liquidation of the short positions at that point, it may bring about a reversal in market dynamics. Additionally, more money flowing into the HYPE ETF may increase demand in the long run.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Ethereum Institutional 2026: Unlocking Powerful Ethereum Adoption
