How high can Bitcoin go? Someone thinks its remarkable bull market will continue right up to $50,000—and they’re putting their money where their mouth is.
As the Wall Street Journal reports, an unnamed investor or investors have purchased a series of options contracts worth nearly $1 million. The contracts, sold on the LedgerX derivatives exchange, are “calls” that give the owner the right to pay $50,000 by late next year to purchase units of the popular digital currency:
The call options represent an extremely bullish position even for Bitcoin since, as the Journal notes, they will be worthless if bitcoin doesn’t break the $50,000 mark by the end of next year.
Such an increase would represent an approximately 150% percent increase on bitcoin’s all-time high, which almost broke $20,000 this month. This is not improbably given that bitcoin opened the year around $1,000.
On the other hand, the unnamed options owner is not off to a great start. The price of bitcoin has stumbled in the last 24 hours, falling to a recent low of $15,2000 amid a controversy involving the popular exchange Coinbase, and the surge of a rival currency known as Bitcoin Cash.