April 18, 2021

The trader bet a million dollars on the fact that in 2018 the price …

Trader Wager One Million Dollars on Bitcoin Price to Reach $ 50,000 in 2018

An unknown trader or group of traders bet $ 1 million on the Bitcoin price reaching $ 50,000 by the end of 2018.

A trader has bet a million dollars that the price of bitcoin will reach $ 50,000 in 2018 Unknown ...

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

The bet was placed through a call option, a contract that allows a buyer to purchase an asset at a specified price before a specified 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 on the market, in order to fix the price of $ 50,000 until December 28, 2018. If by 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..

Although the trader’s name was not disclosed, LedgerX CEO Paul Chow hinted that this could be an investment fund, which, like other institutional investors, until recently had no opportunity to work with Bitcoin on regulated platforms..

A trader has bet a million dollars that the price of bitcoin will reach $ 50,000 in 2018 Unknown ...

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

For the buyer to be able to cover their costs, the bitcoin rate must reach $ 53,600, excluding fees, that is, increase by more than 300% relative to today’s levels. In other words, in 2018, the bitcoin rate may triple, and the trader will still lose money..

Earlier this month, former Fortress Investment Group CEO Mike Novogratz said bitcoin had yet to peak and could rise to $ 50,000 in 2018..

A trader has bet a million dollars that the price of bitcoin will reach $ 50,000 in 2018 Unknown ...

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