The trader put a million dollars on the fact that in 2018 the price of bitcoin will reach $ 50,000


An unknown trader or group of traders has put $ 1 million on the fact that the bitcoin rate will reach $ 50,000 by the end of 2018.

The Wall Street Journal drew attention to an interesting application posted on the first US stock exchange, which included bitcoin derivatives in its listing, LedgerX. An unknown trader paid $ 990,000 for the right to buy up to 275 BTC at $ 50,000 in 2018.

The rate was made through a call option, a contract that allows a buyer to purchase an asset at a certain price up to a given date, regardless of the current price. In this case, the buyer gave $ 3,600 for bitcoin, that is, about 5 times less than the value of the crypto currency in the market to fix the price of $ 50,000 until December 28, 2018. If before this date the trader wants to cover the entire volume of the deal, he will have to pay another $ 13,750,000. Thus, the total amount of his investment will be almost $ 15 million.

Although the name of the trader is not called, CEO LedgerX Paul Chow hinted that it could be an investment fund that, like other institutional investors, until recently had no opportunity to work with bitcoin on regulated sites.

“I have no doubt that there are entire structures that are interested in or are already involved in such transactions,” Chow said. “This is not a private investor, let’s say so.”

For the buyer to be able to cover his expenses, the bitcoin rate should reach $ 53,600, without taking into account charges, that is, to grow by more than 300% relative to today’s levels. In other words, in 2018 the bitcoin rate could triple, and the trader will still lose money.

Earlier this month, former Fortress Investment Group manager Mike Novogratz said that bitcoin had not yet peaked and could grow to $ 50,000 in 2018.

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