Bitcoin OGs selling covered calls are quietly capping $BTC’s upside despite strong ETF demand.

Bitcoin price faces pressure as long-term holders sell covered calls, offsetting ETF demand and impacting market momentum.

Recent market activity suggests that long-term Bitcoin holders, often referred to as “OGs,” are applying a covered call strategy that may be contributing to downward pressure on Bitcoin’s spot price.

Market analyst Jeff Park has outlined how these strategic options trades influence short-term price dynamics, despite growing interest from traditional exchange-traded fund (ETF) investors.

Covered Calls Add Downward Pressure on Bitcoin

Covered calls involve selling call options while holding the underlying asset. In Bitcoin’s case, OGs are using their long-held BTC to write these options and collect premiums.

This action does not introduce new demand or fresh liquidity, which limits the potential for price growth.

Park explained that when market makers buy these call options, they hedge their exposure by selling spot BTC. This activity forces the market price downward, even when institutional demand appears strong.

Since Bitcoin used to back these options, it has remained untouched for over a decade; it does not contribute to new market participation but introduces sell-side pressure.

This continuous stream of covered calls means that OGs are effectively net sellers of delta, dampening bullish momentum. Park noted that as long as whales continue selling calls, the spot market may struggle to break higher.

ETF Demand and Macro Factors Offer Contrasting Signals

While native Bitcoin options appear to suppress price movement, data from ETF products tells a different story. Traditional investors, including those buying into BlackRock’s IBIT ETF, are reportedly willing to pay premiums to gain long exposure.

These signals show persistent interest in Bitcoin from institutional investors, which should act as a bullish indicator under normal conditions.

Despite this, Bitcoin has decoupled from tech-heavy equity indices, underperforming relative to the broader market during the second half of 2025. While U.S. stocks posted fresh all-time highs, Bitcoin retreated to levels near $90,000.

This price divergence has raised concerns about the ongoing influence of derivatives markets on spot valuations.

Some analysts expect Bitcoin to resume its rally once the U.S. Federal Reserve continues with its rate-cutting policy. Liquidity injections are typically favorable for risk-on assets like Bitcoin.

CME Group’s FedWatch tool shows that around 24.4% of traders anticipate another rate cut at the January FOMC meeting, which could serve as a near-term price catalyst.

Related Reading: Bitcoin Is Stuck Because Long-Term Holders Keep Selling To Wall Street, Analyst Says

Market Outlook Remains Divided on Bitcoin’s Next Move

The market remains divided on Bitcoin’s immediate direction. While some analysts forecast renewed bullish momentum above $90,000 if liquidity conditions improve, others warn of a potential decline toward $76,000. 

These conflicting views reflect broader uncertainty in both macroeconomic policy and internal crypto market dynamics. Until long-term holders reduce their use of covered call strategies, Bitcoin’s price may continue to face resistance despite external bullish signals.

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