Why is Bitcoin stuck at $70,000? Options strategies are the key suppressing force

Gate News reports that Bitcoin prices have recently oscillated between $65,000 and $75,000, with the market lacking a clear direction. In addition to geopolitical conflicts and the macro interest rate environment, the options strategies of institutional investors are considered a significant factor limiting market breakthroughs.

Since mid-February 2026, Bitcoin has made multiple attempts to breach the $70,000 mark without success. On one hand, the demand for safe-haven assets due to the Middle East situation provides bottom support for prices, making it difficult to fall below $65,000; on the other hand, the rising U.S. Treasury yields weaken the appeal of risk assets and suppress upward potential.

A deeper reason comes from the derivatives market. Tesseract CEO James Harris points out that institutional capital has been continuously selling high strike call options in the first quarter, generating additional income through the collection of premiums. This “covered call” strategy is based on spot holdings, allowing investors to achieve stable returns even in a sideways market.

This operation transfers significant risk to market makers. As market makers hold long gamma positions, they need to buy when prices drop and sell when they rise to maintain risk neutrality. This hedging behavior inadvertently creates a “buy low, sell high” mechanism, thereby compressing the price volatility range and keeping Bitcoin in a long-term oscillation structure.

Market data also confirms this phenomenon. The Bitcoin 30-day implied volatility index (BVIV) has recently dropped to around 56%, contrasting with the rising volatility in stocks and commodities, indicating that market fluctuations are being artificially suppressed.

Currently, Bitcoin’s trend is influenced not only by the macro environment but also deeply tied to the derivatives structure. When yield strategies dominate capital behavior, prices may continue to maintain a range-bound oscillation. Whether it can break through the key range in the future will depend on changes in capital allocation and whether volatility is released again. (CoinDesk)