The call option pressure stalls Bitcoin's price action as whales control the volatility

Bitcoin’s price action (BTC) continues to be trapped in a narrow range, blocked by the defensive tactics of veteran investors who systematically sell call options. This strategic move has had a profound impact on market dynamics, compressing implied volatility to 44%, according to Bitwise Alpha analysis.

The current price action reflects a silent war between supply and demand. Large holders use options hedging as a shield against bullish movement, while simultaneously forcing market makers to perform offsetting hedges. This cascade of hedging has turned the market into an anti-momentum machine, where every upward attempt faces predictable resistance.

Bitcoin ETF flows have experienced consistent inflows, but their impact is undermined by the structural pressure of native options. The supply of new buyers simply cannot absorb the coordinated coverage emerging from options positions. The result is erratic and frustrating price action: superficial movements without directional conviction.

The compressed volatility at 44% does not represent a healthy market condition, but rather a symptom of a rigid trading structure. With long-term holders controlling the options game, traders’ optimism has evaporated. Price predictions for Bitcoin become speculative and uncertain, reflecting the market’s inability to break free from the constraints imposed by defensive coverage.

While Bitcoin trades around $87.35K with a negative movement of -0.99% in 24 hours, the real issue is not the current price, but the artificial restriction of price action that prevents the market from discovering its true equilibrium.