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?
