The post Long-term Bitcoin holders drive market lower with covered call tactics appeared on BitcoinEthereumNews.com.

Jeff Park, a prominent market analyst and investment manager currently serving as the Chief Investment Officer (CIO) at ProCap BTC, says that long-term Bitcoin holders, often referred to as “whales” or “OGs,” are increasingly selling covered calls. In this strategy, they sell call options against a large existing holding, such as BTC and ETH, to generate extra income or yield. These options grant the buyer the right, but not the obligation, to purchase an asset at a predetermined price in the future, while the seller retains a profit. Park argued that this practice gives rise to a drastic drop in the price of spot BTC. Park blames BTC OGs for recent price declines in the crypto market  Regarding Park’s argument, sources highlighted that these major Bitcoin holders establish substantial sell-side pressure via their covered call strategy. On the other hand, they noted that market makers, who play a significant role in purchasing these covered calls, are on the other side of this trade. Therefore, this calls for an urgency for them to safeguard themselves by engaging in activities such as selling spot BTC to cover their position. This, in turn, lowers market prices, although analysts discovered a deep interest from traditional ETF investors. Meanwhile, recent reports have revealed that the BTC designed to support these options has been held for several years and does not demonstrate the presence of new demands or fresh liquidity in the market. As a result, these calls bring about a reduction in prices. To further elaborate on this point, Park mentioned that, “When you already own Bitcoin that you’ve had for over 10 years and start selling calls against it, only the act of selling calls adds new delta to the market—and that delta is negative—so you end up being a net seller of delta…

---

Filed under: News - @ December 14, 2025 2:15 am