Trader bet $1 million that Bitcoin price will reach $50,000 in 2018

The Wall Street Journal drew attention to an interesting application placed on the American exchange LedgerX - the first American regulated exchange for the transfer of Bitcoin. which included Bitcoin derivatives in its listing. An unknown trader paid $990,000 for the right to buy up to 275 BTC at $50,000 in 2018.

The bid was made through a contract allowing the buyer to purchase an asset at a certain price before a given date, regardless of the current price. In this case, the buyer paid $3,600 per bitcoin, that is, approximately 5 times less than the cryptocurrency is worth on the market, in order to fix the price of $50,000 until December 28, 2018. If before this date the trader wishes to cover the entire volume of the transaction, he will have to deposit another $13,750,000. Thus, the total volume of his investment will be almost $15 million.

The name of the trader was not revealed, but LedgerX CEO Paul Chow hinted that we could be talking about some kind of investment fund, which, like other institutional investors, until recently did not have the opportunity to work with Bitcoin on regulated platforms.

Such a bet indicates that the trader assumes that the price of Bitcoin will continue to grow rapidly in the new year. To avoid losses, the price would have to reach $53,600, including the cost of commission fees. This is an increase in price of approximately 320% from the current value of approximately $17,000. This whole situation suggests that the price of Bitcoin could triple over the next year, but the buyer would still lose money on the trade. However, if the price of Bitcoin continues its rapid rise further, then this could become the deal of a lifetime.

According to https://happycoin.club