BitMex Sees $5 Million Bet on Bitcoin Being Over $10K in September and December
Somebody Just Bet $5 Million on the Fact That Bitcoin Will Be Over $10,000 in September and December
Do you believe the price of bitcoin will be over $10,000 by September 28? Someone in the crypto community is certainly confident that it will be. An unknown trader just bet $5 million on the fact that bitcoin will be worth over $10,00 on September 28 and December 28.
Someone just bought 5MM worth of Sept 28 and Dec 28 10k Calls.
— Flood [BitMEX] (@ThinkingUSD) August 23, 2018
As spotted by @ThinkingUSD on Twitter, an anonymous trader purchased $2.5 million of bitcoin futures contracts stating that the price of bitcoin will be over $10,000 on September 28, 2018. Just one minute later, that same trader made a similar call for December, betting that the price of bitcoin will be over $10,000 on December 28.
The bids add up to $5 million even. In other words, the trader is betting $5 million that bitcoin will rise over $10,000 in September, and then will still be over $10,000 by the end of the year.
Does this trader know something we don’t know? Is this an inside source at the SEC buying bitcoin futures contracts in anticipation of bitcoin ETF approval before September 30? We’ve certainly seen much bigger bets on bitcoin futures markets. However, the bet is notable because we’re in the midst of a bear market.
Bitcoin’s current bear market has been dragging on for 8 months. Since January, the market has been slumping to lows below $6,000. Today, bitcoin appears to have stabilized at around $6500. There have been brief surges to $8,000 over the summer, and one surge close to $10,000 earlier this year. However, bitcoin has not broken the $10,000 mark since January.
It’s unclear why these investor thinks bitcoin will be worth more than $10,000 in September or December. This could be just someone hedging their bets. Or, it could be an inside source preparing to cash in when a bitcoin ETF gets approved before September 30.
If you’re out of the loop, the SEC has until September 30 to make a decision on the VanEck SolidX Bitcoin Trust, an ETF that stands a real chance of being the first bitcoin ETF approved by the US regulatory agency. If approved, the ETF would likely send the bitcoin market skyrocketing.
Does this $5 million bettor know something we don’t know about the ETF? Is this an SEC insider looking to make a quick buck? Or is this just a random hedge bet? We’ll find out by September 28.