According to a report by CoinTelegraph, market analyst Jeff Park stated that long-term investors holding large amounts of Bitcoin (“whales” or “OGs”) are driving down the spot price of Bitcoin by selling covered call options, introducing disproportionate selling pressure. This means market makers must hedge their exposure to buying call options by selling spot Bitcoin, thus forcing the market price down, despite strong demand from traditional ETF investors. Note: Selling a call option grants the buyer the right, but not the obligation, to purchase an asset at a predetermined price in the future, while the seller receives an option premium.
Analysts: BTC OG sells covered call options, pushing down Bitcoin spot price.
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