A halving is a programmed event in Bitcoin (and some other cryptocurrencies) where the block reward given to miners is cut in half. For Bitcoin, this occurs every 210,000 blocks โ approximately every four years.
Bitcoin Halving History
2009: 50 BTC per block (launch).
2012 (Block 210,000): Reduced to 25 BTC.
2016 (Block 420,000): Reduced to 12.5 BTC.
2020 (Block 630,000): Reduced to 6.25 BTC.
2024 (Block 840,000): Reduced to 3.125 BTC.
Why Halvings Matter
Halvings reduce the rate at which new Bitcoin enters circulation, enforcing its scarcity. With a fixed maximum supply of 21 million BTC, halvings ensure supply approaches this cap asymptotically. The last Bitcoin is projected to be mined around the year 2140.
Price Impact
Historically, each Bitcoin halving has been followed by a significant bull market, typically 12-18 months later. The theory is that reducing new supply while demand grows or stays constant creates upward price pressure. However, past performance doesn't guarantee future results.