Long‑term Bitcoin investors are pushing the market down with covered‑call strategies.
Long‑term Bitcoin holders, often called whales or OGs, are increasingly selling covered call options on their BTC and ETH positions. By writing calls they collect premium income while retaining the underlying assets. This strategy adds negative delta to the market, effectively increasing sell pressure on spot Bitcoin. Analysts say the surge in covered calls is a key factor behind recent price drops. Market makers buying these calls must hedge by selling spot BTC, which further depresses prices. The Bitcoin used to back the options has been held for years, indicating no fresh liquidity is entering the market. Consequently, the covered‑call activity creates a sustained downward bias in Bitcoin’s price. Some analysts link Bitcoin’s movement to tech‑stock trends and expect a rebound if the Federal Reserve continues rate cuts. Others, citing recent trader commentary, warn of a possible slide toward $76,000. The market remains divided, with price direction hinging on both macro policy and the continued use of covered calls by large holders.
