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