BTC OGs selling covered calls is the main culprit suppressing price: Analyst
Long-term Bitcoin holders selling covered calls are suppressing spot BTC prices despite strong ETF demand, according to an analyst.Summary
Market analyst Jeff Park suggests that long-term Bitcoin holders, or "OGs"/whales, selling covered calls are the primary reason for suppressed spot BTC prices, even with strong demand from traditional ETF investors like BlackRock's IBIT.
When these whales sell calls, market makers who buy them must hedge by selling spot BTC, creating downward pressure. Since the BTC used to underwrite these options is old inventory and not new liquidity, the strategy acts as a net negative delta on the market.
The analysis concludes that Bitcoin's price action will remain choppy as long as these whales continue to profit by selling covered calls against their existing holdings. This dynamic is occurring while Bitcoin has recently decoupled from tech stocks, falling toward $90,000.
(Source：Cointelegraph)