‘OG’ Whales Cap Bitcoin Price by Selling Options

• Bitwise Alpha Head Jeff Park warns that “OG” Bitcoin holders are aggressively selling call options, creating a supply ceiling that caps upside momentum.
• This yield-harvesting strategy has crushed Implied Volatility (IV) from 63% to 44%, trapping Bitcoin in a “mean reversion” loop despite ETF inflows.
• While IBIT investors are buying upside calls, their volume is insufficient to overpower the massive supply of options sold by native crypto whales.

Bitcoin’s stalled rally isn’t a demand problem; it’s a structural supply problem. According to Jeff Park, Head of Alpha Strategies at Bitwise, early-vintage Bitcoin holders (OGs) are actively suppressing BTC price action by selling massive amounts of call options against their long-term inventory.

Park noted that this structure has existed for years, even before the launch of spot Bitcoin ETFs. While some OG holders sell Bitcoin directly, selling call options allows them to earn yield while still holding coins. However, this also caps price movement and prevents strong upside trends.

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At the same time, demand from spot ETFs and digital asset trusts has slowed. Park said ETF buying alone has not been strong enough to absorb the constant flow of options supply from native Bitcoin holders. As a result, Bitcoin trades in a high-supply and low-volatility range.

Falling Volatility, Limited Upside

Park said that implied volatility is a key signal for Bitcoin direction. In late November, implied volatility reached around 63%, which briefly raised hopes for a breakout. Over the last two weeks, that figure dropped back to roughly 44%.

According to Park, this sharp decline shows that the market no longer prices strong upside moves.

He added that volatility matters because sustained price trends usually require higher option demand on the upside. Without that demand, price moves tend to reverse near key levels.

The current condition of the market, with low implied volatility, favors range trading rather than strong rallies.

Park linked the low volatility directly to options sold by OG holders. When calls are sold in large sizes, market makers hedge these positions in a way that pushes prices back toward the middle of the range.

This behavior reduces sharp moves and causes sideways trading, Park confirmed.

Options Flows Shape Price Action

Park said that the covered call strategy used by OG Bitcoin holders creates long gamma exposure for market makers. This forces dealers to hedge in a way that pushes prices back toward strike levels.

The result is mean reversion and much lesser volatility.

IBIT call buyers create the opposite effect. When ETF investors buy upside calls, market makers face negative gamma, which can support sharp upside moves.

However, Park said IBIT options still lack enough share of the total market to overpower the native Bitcoin options supply.

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