Bitcoin News: Bitcoin Price Capped as Long-Term Holders Sell Covered Calls, Analyst Says

Bitcoin’s recent price stagnation below the $90,000–$92,000 range may be driven less by weak demand and more by options-market dynamics, according to market analyst Jeff Park.Despite continued interest from traditional investors — including spot Bitcoin ETF buyers willing to pay premiums for long exposure — long-term Bitcoin holders selling covered call options are exerting persistent downward pressure on spot prices, Park argued.How Covered Calls Are Suppressing BTC PriceCovered calls involve selling call options against an existing Bitcoin position. The seller collects a premium, while granting the buyer the right — but not the obligation — to purchase BTC at a predetermined price in the future.According to Park, large, long-term BTC holders (“OGs” or whales) have increasingly used this strategy to generate yield from coins held for many years.“When you already have Bitcoin inventory that you’ve held for 10-plus years and you sell calls against it, the only new market impact comes from the call selling — and that impact is negative,” Park explained.The key mechanism lies in market maker hedging:Market makers typically buy the call options from whalesTo hedge their exposure, they sell spot BTCThis hedging activity introduces consistent sell-side pressure, even as ETF investors accumulate BTC on the other side of the marketBecause the Bitcoin used to underwrite these calls is not newly acquired, the strategy does not reflect fresh demand or capital inflows — only additional negative delta from options positioning.Options Market Steering Short-Term Price ActionThe result, Park said, is a market where options flows increasingly dictate spot price behavior, leading to choppy, range-bound trading rather than sustained upside momentum.As long as whales continue monetizing their holdings through covered calls, Bitcoin may struggle to break decisively higher, even in the presence of structural demand from institutions.This dynamic helps explain why Bitcoin has lagged risk assets despite favorable macro narratives and expanding access through regulated investment vehicles.Bitcoin Decouples From Stocks as Outlook DivergesBitcoin has notably decoupled from U.S. equities in the second half of 2025, with stock indices posting new highs while BTC retreated toward the $90,000 level.Some analysts continue to expect a renewed Bitcoin rally if the U.S. Federal Reserve resumes its rate-cutting cycle and injects additional liquidity — a historically supportive backdrop for risk assets.However, futures markets currently price only a 24.4% probability of another rate cut at the January FOMC meeting, according to CME Group’s FedWatch Tool.Others remain cautious, warning that Bitcoin could revisit lower support levels near $76,000 if macro conditions tighten further or if options-driven selling persists.What to Watch Going ForwardMarket participants are now closely monitoring:Changes in options open interest and call-selling activityETF inflows relative to spot price responseSigns that long-term holders reduce covered call exposureA shift in any of these factors could alter the balance between derivatives-driven pressure and structural demand — and determine Bitcoin’s next major move.