Bitcoin halving in 3 days

Every four years, Bitcoin's issuance is cut in half. It's a well-anticipated event by speculators - if you cut the supply of something that has growing demand, the price should increase substantially.

Before and after the halvening:

Bitcoin yearly inflation rate now: 3.64%

Bitcoin yearly inflation rate after: 1.80%

I still believe the halvening is a technical risk for bitcoin in the long run. You can read my thoughts about it here. However, there's no doubt it's still the most anticipated event in cryptocurrencies.

Catching the perfect storm

One of the most influential narrative bitcoin has, is the limited supply. An asset that is (expectedly) limited in supply can be fascinating in a world full of unprecedented money-printing and stimulus measures by the Federal Reserve and the U.S. government due to the COVID2019.

And the hedge fund managers are noticing. A few days ago, Paul Tudor Jones published a bullish research note about bitcoin as a hedge.

Bitcoin has caught the perfect economic storm it could have ever dreamed of, and Tudor’s note is probably one of the biggest acknowledgments bitcoin has ever received by the Wallstreet fund managers.

There has been a long waited anticipation of Wallstreet entering digital assets. In my opinion, Tudor just made it official.

It’s hard to say how bitcoin will perform during the halving and the economic shutdown. Nevertheless, it looks like the next 1-3 years might be a game-changer for blue-chip cryptocurrencies.

You can read his research note here: https://www.scribd.com/document/460382154/May-2020-BVI-Letter-Macro-Outlook#from_embed.

-Edgar

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