Analyst: Bitcoin OGs Selling Covered Call Options Is the Main Reason for Price Suppression

Jinse Finance reported that market analyst Jeff Park stated that bitcoin whales who hold long-term positions are suppressing the spot price of bitcoin by selling covered call options. A covered call option refers to the seller granting the buyer the right to purchase a certain asset at a predetermined price in the future, in exchange for an option premium. Park pointed out that large, long-term BTC holders are introducing disproportionate selling pressure through this strategy, partly because market makers are on the other side of the trade, buying these covered call options. This means that in order to hedge the risk from buying call options, market makers must sell BTC in the spot market, thereby exerting downward pressure on market prices even as demand from ETF investors on traditional exchanges remains strong.