BTC OGs selling covered calls is the main culprit suppressing price: Analyst

Long-term Bitcoin (BTC) whales selling covered calls, a strategy of selling telephone options that springiness the purchaser the close but not an work to acquisition an plus successful the aboriginal astatine a predetermined terms successful speech for the seller collecting a premium, is suppressing spot BTC prices, according to marketplace expert Jeff Park.

Large, semipermanent BTC holders, besides known arsenic “whales” oregon “OGs,” present a disproportionate magnitude of sell-side unit done this covered telephone strategy, partially due to the fact that marketplace makers are connected the different side, buying the covered calls, Park said.

This means that the marketplace makers indispensable hedge their vulnerability to bargain the calls by selling spot BTC, forcing marketplace prices down, contempt beardown request from accepted exchange-traded money (ETF) investors.

The volatility skews of BlackRock’s IBIT ETF versus autochthonal Bitcoin options, similar those recovered connected crypto derivatives speech Deribit. Source: Jeff Park

Because the BTC utilized to underwrite the options has been held for a agelong clip and does not correspond caller request oregon caller liquidity, the calls enactment arsenic a nett downward unit connected prices. Park said:

“When you already person the Bitcoin inventory that you’ve had for 10-plus years that you merchantability calls against it, it is lone the telephone selling that is adding caller delta to the marketplace — and that absorption is antagonistic — you are a nett seller of delta erstwhile you merchantability calls.” 

The investigation concluded that Bitcoin’s terms is being steered by the options market and that terms enactment volition stay choppy arsenic agelong arsenic whales proceed to extract short-term profits from their Bitcoin stash by selling covered calls.

Related: Short-term Bitcoin traders were profitable for 66% of 2025: Will profits emergence successful 2026?

Bitcoin decouples from stocks arsenic analysts effort to gauge wherever BTC’s terms goes next

Bitcoin, which immoderate analysts accidental is correlated with tech stocks, decoupled from the banal market successful the second fractional of 2025, arsenic stocks continued to people caller highs portion Bitcoin fell backmost down to astir the $90,000 level.

The terms of Bitcoin hovers supra the $90,000 level. Source: CoinMarketCap

Several analysts forecast that BTC volition resume its terms rally erstwhile the United States Federal Reserve continues the rate-cutting rhythm and injects liquidity into the fiscal system, which is simply a affirmative terms catalyst for risk-on assets.

24.4% of traders expect different involvement complaint chopped astatine the Federal Open Market Committee (FOMC) gathering successful January, according to fiscal derivatives institution CME Group’s FedWatch information tool.

However, different analysts project a imaginable driblet to $76,000 and accidental that Bitcoin’s bull tally is already over.  

Magazine: Quantum attacking Bitcoin would beryllium a discarded of time: Kevin O’Leary