LedgerX recently revealed a new call option that could help push Bitcoin price to $100k by 2020.
Hey Bitcoin, When Moon?
Regular Joe Schmoe investors can now place bets on Bitcoin rising to $100,000 thanks to regulated derivatives offered by LedgerX exchange. LedgerX recently revealed the call option and participants are betting that Bitcoin price will top $100k by December 2020. This means Bitcoin would need to pull-off a 10x move from today’s price and this would also bring the digital asset’s market capitalization to $2 trillion.
For the past two years, LedgerX has offered derivatives to its institutional clients and now that the company has gained approval from Commodity Futures Trading Commission (CFTC) it will make the unique call option available to retail investors.
Who’s Gonna Take the Plunge?
Currently, it’s not known how many investors are seriously interested in the product, especially after the serious 25%+ beating Bitcoin has taken over the past two weeks. LedgerX Chief Executive Officer Paul Chou told Bloomberg, “Often what happens is the first trade is the most important, and everybody else watches it.” Chou also mentioned that many of LedgerX institutional customers with accounts ranging from $10 million to $1 billion have inquired about the call option. According to Chou:
“Dozens and dozens of these institutions got back to us saying we’d be interested in trading a contract like this” and Chou explained that while $100,000 is a large sum, “a lot of us who’ve been in this space remember Bitcoin at $1 and then it hit $10 and $100 and $10,000. A $100,000 contract doesn’t even make us blink.”
Institutions Go With the Flow
Interestingly, as more and more institutional and derivatives based products debut, Bitcoin has correctly sharply from a double top at $13,200. A number of analysts are saying today’s correction was driven purely by technical while others believe that yesterday’s Senate Banking Committee’s hearing over Facebook’s Libra project has injected an unwarranted amount of fear into the crypto market.
The LedgerX product reveal comes right as other Bitcoin derivatives exchanges like BitMEX and CME are witnessing all-time high volumes as driven by institutional traders. Adding to the excitement, the Intercontinental Exchange’s Bakkt Bitcoin exchange is scheduled to begin testing Bitcoin futures on July 22
Do you think the LedgerX call option will help Bitcoin price reach $100,000 by 2020? Share your thoughts in the comments below!
Images via Shutterstock,
The post New Call Options Allow Joe Schmoe to Bet on $100,000 Bitcoin appeared first on Bitcoinist.com.
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