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Analyst: BTC OG Selling Covered Call Options, Depressing Bitcoin Spot Price
Summary: According to CoinTelegraph, market analyst Jeff Park stated that long-term investors holding a significant amount of Bitcoin ("whales" or "OGs") are depressing the Bitcoin spot price by selling covered call options, introducing disproportionate selling pressure. This means that market makers must hedge the risk exposure of buying call options by selling spot Bitcoin, forcing the ...
According to CoinTelegraph, market analyst Jeff Park stated that long-term investors holding a significant amount of Bitcoin ("whales" or "OGs") are depressing the Bitcoin spot price by selling covered call options, introducing disproportionate selling pressure.
This means that market makers must hedge the risk exposure of buying call options by selling spot Bitcoin, forcing the market price down, despite strong demand from traditional ETF investors.
Note: 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 collects the option premium.
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Link: Analyst: BTC OG Selling Covered Call Options, Depressing Bitcoin Spot Price [Copy]
