Undisclosed Investor Bets $1 million on Bitcoin's Growth to $50,000
The cryptocurrency market is drawing more and more interest from investors from all around the world. Although the price of bitcoin has recently experienced a remarkable drop, it surely seems that investors are still interested in this market and have not lost their faith in bitcoin's potential to further increase its value.
Investor bets $1 million on bitcoin's growth to $50,000 by the end of 2018
Actually, it has recently been revealed that a bitcoin investor, whose identity was not revealed, has actually bet $1 million on the prediction that the cryptocurrency will hit $50,000 by the end of 2018.
The news was first reported by the Wall Street Journal, which revealed that this person is quite sure that bitcoin's price will continue to rise.
Apparently, this investor (or investors, not fully clear for the moment) has bought a series of options contracts in the total value of $1 million. These contracts were reportedly sold on the LedgerX derivatives exchange.
This was the first time when someone paid $1 million for the options contracts. It was not revealed for the moment if the transaction was singular or the purchases were made through several transactions.
The whole idea of these contracts is that the investor is taking a lot of risks. If the price of bitcoin will be below $50,000 at the end of December, 2018, it means that the options will expire and the investor will lose all the money put into this.
However, if the investor was right to assume that the price of bitcoin will be at least $50,000 by the end of next year, the owner will have the option to purchase 275 bitcoins for $50,000 each, meaning $13.8 million.
The start is not very good for whoever bet money on bitcoin, as its price dropped in the past 24 hours below $13,000.
Most analysts, expect bitcoin to regain its position in the $19,000 price range soon. The hypothesis that the price of bitcoin will reach $50,000 by the end of 2018 is not that shocking or unexpected, considering that the cryptocurrency started the year at $1,000 and managed to increase until close to $20,000.