Trader makes million-dollar bet that bitcoin will triple next year

Someone just bet that bitcoin will top $50,000 next year.

Online records from New York-based digital currency-trading platform LedgerX showed 275 call options expiring Dec. 28, 2018, were bought in Wednesday’s trading session at a volume-weighted average price of $3,600. At that price, roughly $1 million was spent on the bet.

The trade gives the investor or investors the option to buy bitcoin at $50,000 in the roughly next 12 months, implying expectations that the digital currency will soar beyond that price. An investor would lose the bet if bitcoin doesn’t reach $50,000 in that time period, but would reap profits if it climbs well above that level.

 
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With bitcoin now trading at about $15,300 at the time of this publication then it means the call options trader or traders expect the digital currency to soar more than 200 percent in the coming 12 months.

Trading records from electronic market start-up company LedgerX highlight that the massive money bid was placed by one or more unidentified traders.

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LedgerX Chief Executive, Paul Chou, warned that regulations prevent him from identifying the bidders but suggested that a hedge fund was likely behind the gamble.

Mr Chou said: “Without a doubt, there are institutions out there that are looking at these types of trades or have done these types of trades

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