Halving
Definition
A programmed event in Bitcoin and some other cryptocurrencies where the block reward for miners is cut in half, reducing the rate of new supply creation and historically preceding price increases.
A halving is a built-in mechanism in Bitcoin's code that reduces the mining reward by 50% approximately every four years (every 210,000 blocks). Bitcoin started with a 50 BTC block reward in 2009, halved to 25 in 2012, then 12.5 in 2016, 6.25 in 2020, and 3.125 in 2024.
Halvings are significant because they directly reduce the rate at which new Bitcoin enters circulation. With demand constant or growing and supply creation decreasing, basic economics suggests upward price pressure. Historically, Bitcoin's price has risen dramatically in the 12-18 months following each halving.
The halving schedule is fully predictable and will continue until the maximum supply of 21 million Bitcoin is reached around the year 2140. After the final halving, miners will earn transaction fees only, and no new Bitcoin will ever be created.
From a miner's perspective, halvings cut revenue in half overnight (assuming constant prices). This forces less efficient miners off the network, temporarily reducing hash rate until the remaining miners adjust. Over time, surviving miners benefit from reduced competition and (historically) rising prices.
While past halvings have preceded bull markets, this is a sample size of only four events. Each cycle has different macro conditions, institutional involvement, and market maturity. Halvings reduce supply growth, but price ultimately depends on demand, which is driven by adoption, regulation, and macroeconomic factors.
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Frequently Asked Questions
When is the next Bitcoin halving?
The most recent Bitcoin halving occurred in April 2024, reducing the block reward to 3.125 BTC. The next halving is expected around 2028, when the reward will drop to 1.5625 BTC per block.
Does halving guarantee a price increase?
No. While all four historical halvings preceded significant price increases (months later), this pattern isn't guaranteed to repeat. Each cycle has different conditions, and markets may increasingly price in halvings in advance as they become better understood.