BTC OGs Selling Covered Calls Is Putting Downward Pressure on Prices: Analyst Insights

BTC OGs Selling Covered Calls Is Putting Downward Pressure on Prices: Analyst Insights

Long-term Bitcoin holders, often referred to as “whales” or “OGs,” are significantly impacting Bitcoin's market price. This is occurring as they utilize a covered call strategy that introduces substantial sell-side pressure. Market makers, who are on the opposite side of these transactions, hedge their risks by selling Bitcoin. This has led to a decrease in Bitcoin’s price, despite strong demand from ETF investors.

Key Takeaways

Large, long-term Bitcoin holders are using covered call strategies that pressure prices downward.
Market makers buy covered calls and hedge their positions by selling spot Bitcoin, resulting in a price decline.
Bitcoin is currently experiencing volatility as whales prioritize short-term profits over long-term price stability.
Analysts are observing a decoupling of Bitcoin from traditional tech stocks, with predictions of future price movements based on U.S. Federal Reserve actions.
There are mixed forecasts about Bitcoin's price direction, with some expecting recovery and others predicting a dip.

The Impact of Whales on Bitcoin Pricing

Large, long-term Bitcoin holders, often referred to as “whales,” create a significant amount of sell-side pressure on the market through covered call strategies, as suggested by financial analyst Jeff Park. When whales sell covered calls, market makers purchase these options. To hedge their risk, market makers must sell Bitcoin on the spot market, which can drive prices down, even in the face of strong demand from traditional investors in exchange-traded funds (ETFs).

Bitcoin Price, Bitcoin Options
The volatility skews of BlackRock’s IBIT ETF versus native Bitcoin options, such as those available on crypto derivatives exchange Deribit. Source: Jeff Park

Since the Bitcoin being used to back these options has been held for a long period, it does not reflect new demand, creating net downward pressure on the market price. Park noted that as long as whales continue to sell covered calls for short-term profit, Bitcoin’s price will remain dictated by the options market, leading to ongoing volatility.

Current State of Bitcoin in Relation to the Stock Market

Historically, Bitcoin has shown a correlation with technology stocks; however, in the latter half of 2025, it began to decouple from this trend. While tech stocks continued to rise, Bitcoin's value declined back to around the $90,000 mark.

Bitcoin Price, Bitcoin Options
The price of Bitcoin hovers above the $90,000 level. Source: CoinMarketCap

Several analysts believe that Bitcoin could resume its upward trajectory if the U.S. Federal Reserve continues to cut interest rates and inject liquidity into the economy, stimulating risk-on assets like Bitcoin. The FedWatch data tool from financial derivatives firm CME Group shows that 24.4% of traders anticipate another interest rate cut at the next Federal Open Market Committee (FOMC) meeting in January.

Conversely, other analysts warn of a potential drop to $76,000, suggesting that Bitcoin's earlier bull run may have already concluded.

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