Bitcoin Spot Price Pressured by Long-Term Holders' Options Strategy

According to ChainCatcher, market analyst Jeff Park has highlighted that long-term Bitcoin investors, often referred to as 'whales' or 'OGs,' are exerting downward pressure on Bitcoin's spot price by selling covered call options. This strategy introduces significant selling pressure. Market makers, in response, are compelled to sell spot Bitcoin to hedge their exposure from purchasing call options, which leads to a decrease in market prices. This occurs despite strong demand from traditional ETF investors. Selling call options grants the buyer the right, but not the obligation, to purchase an asset at a predetermined price in the future, while the seller earns a premium for the option.