Analysis: "BTC's Rise Could Be Hindered by Options Markets"

Cointelegraph analyzed that Bitcoin's rise may be suppressed by spot ETF options. The media outlet explained, "The cash-and-carry strategy, which involves buying spot and shorting futures, has seen its annual return fall below 5%. Consequently, covered calls (a strategy that involves selling call options while holding spot BTC) are gaining popularity in the options market, generating annual returns of 12-18%. This strategy could suppress BTC's upside. Indeed, BTC's implied volatility (IV) declined from 70% to 45% throughout 2025, suggesting that institutions' consistent call option selling strategy has reduced market volatility. However, the selling pressure is matched by buying call options in anticipation of price increases, and demand for put options to protect against downside remains strong. Ultimately, this is likely a process of market maturity, with institutional funds entering the market to capitalize on volatility and profit."