Daily Crypto Update - May 12, 2020- The Bitcoin Halving 2020 Just Happened

$BTC 24 Hour High $9,033.47 $BTC 24 Hour Low $8,374.32 $BTC -1.5%

The Bitcoin halving, one of the most anticipated events in the crypto world, finally happened today at 19:23 UTC by AntPool. Miners who support the most valuable and revered blockchain network in the cryptocurrency ecosystem will now earn half as much as they used to, just as Satoshi Nakamoto designed.

Futures for bitcoin traded on CME Group Inc., were lower on the day by at least 10%, as gauged by the most-active May contract BTCK20, +0.62%, which expires May 29. It was trading at $8,955.

Bitcoin slid on Monday in volatile trading, after it went through a technical adjustment that reduced the rate at which new coins are created, but the outlook remained upbeat as the increase in supply slows down.

Monday's "halving" cuts the rewards given to those who "mine" bitcoin to 6.25 new coins from 12.5. The next halving will be in 2024.

Bitcoin is up 24% in the year to date as are bitcoin futures. By comparison, gold prices GC00, +0.63%, the asset bitcoin is often compared against, was up 11.5% in the year to date based on the most active contract on Comex. Meanwhile, the Dow Jones Industrial Average DJIA, +0.31% was down 15.3% so far this year, the S&P 500 index SPX, -0.04% was off 9.5% over the same period and the Nasdaq Composite Index COMP, -0.00% was holding on to a 2.2% advance thus far in the year.

Google Trends, a barometer for gauging interest in trending search topics, shows searches for “halving” or “bitcoinhalving” at five times the peak in 2016, when the blockchain underwent its previous halving event. 

Paul Tudor Jones II, the hedge-fund magnate known for correctly predicting the 1987 stock-market crash, told Bloomberg News Thursday his $38 billion Tudor Investment Corp. is putting money into bitcoin futures. 

“I am not a hard-money nor a crypto nut,” Jones told clients in a market outlook note titled, “The Great Monetary Inflation.” But the “best profit-maximizing strategy is to own the fastest horse,” he wrote. 

“If I am forced to forecast, my bet is it will be bitcoin,” according to Jones. “The most compelling argument for owning bitcoin is the coming digitization of currency everywhere, accelerated by COVID-19.”

Paul Tudor Jones said that he has "a little over 1%" of his assets in bitcoin during a Monday morning appearance on CNBC.

"Bitcoin, I think it's great speculation. I've got a little over 1% of my assets in bitcoin, maybe it's almost 2, that seems like the right number,” said the founder and chief investment officer of Tudor Investment Corp. during the interview.

In other news, The Federal Reserve on Monday announced a fresh round of stimulus designed to calm markets and buffer the hit to the economy from the corona-virus pandemic. Among other steps, the Fed said it would buy exchange-traded funds that track the corporate bond market, a first for the U.S. central bank.

S&P and Russel Index continue to trade in the Red while Nasdaq and Dow 30 saw very modest gains.

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