Some Investors Think Bitcoin Could Reach $50,000 Next Year
Thu Dec 21 2017
Nikki Bailey (1017 articles)

Some Investors Think Bitcoin Could Reach $50,000 Next Year

One trader thinks that Bitcoin will triple next year, so confident in the claim that the person made a million-dollar bet on it.

Online records from the digital currency-trading platform Ledger X showed that 275 call options were purchased Wednesday that expire December 28, 2018, CNBC reports. The options are at a volume-weighted average of $ 3,600, making the purchase roughly $ 1 million in total.

The option gives investors the ability to purchase Bitcoin at $ 50,000 over the next 12 months. That means in order for it to be a bargain, Bitcoin would need to be worth more than that $ 50,000 price tag—otherwise investors would lose money on the deal.

Bitcoin is currently trading at $ 15,299.05, according to Coinbase. The cryptocurrency has dropped in value by more than $ 1,000 since yesterday, but is up almost 86% since last month and up more than 1,743% since last year. From there, the math is simple: In order for Bitcoin to reach $ 50,000, it would need to increase by over 200% in the next 12 months. Phew.

And will it? Look no further than the cover story of Fortune’s January 2018 issue, which answers the question on everyone’s minds: How high will it go?

Nikki Bailey

Nikki Bailey

Nikki Bailey reports on US Stocks. She covers also economy and related aspects. She has been tracking US Stock markets for several years now. She is based in New York