What is Bitcoin Halving ?

What is Bitcoin Halving ? (Why it matters for supply and price)

Bitcoin halving is an event that happens roughly every four years (every 210,000 blocks).
During a halving, the reward that miners receive for validating transactions and adding new blocks to the blockchain is cut in half.
This reduces the rate at which new Bitcoins are created, making it a core part of Bitcoin’s monetary policy.

Bitcoin halving history

Bitcoin has a fixed supply of 21 million coins.
To mimic scarcity like gold, halving events gradually reduce the flow of new coins entering circulation:

- 2009 → 50 BTC per block (launch).
- 2012 → 25 BTC.
- 2016 → 12.5 BTC.
- 2020 → 6.25 BTC.
- 2024 → 3.125 BTC (the latest halving).

The next halving is expected in 2028, reducing rewards to 1.5625 BTC.

Why does it matter in 2025?

The April 2024 halving is already shaping Bitcoin’s supply and market dynamics:

1. Supply Shock:
Only 3.125 new BTC are issued per block, making Bitcoin scarcer than ever.

2. Miner Economics:
Many smaller miners faced pressure after rewards dropped, leading to more consolidation and efficiency upgrades.

3. Market Impact:
Historically, halvings have preceded major bull runs. Since mid-2024, Bitcoin’s price has been closely watched for post-halving effects.

4. Long-Term Scarcity:
With fewer coins entering circulation, Bitcoin continues to strengthen its narrative as digital gold.

Risks and Considerations

Even in 2025, halvings are not without challenges:

- Mining profitability dropped sharply in 2024, forcing some miners offline.
- Energy efficiency and access to cheap electricity remain crucial for survival.
- Market volatility around halving periods can be extreme, with both surges and sharp corrections.
- The very last Bitcoin is expected to be mined around 2140.

In short

Bitcoin halving, most recently in April 2024, cut block rewards to 3.125 BTC.
By slowing new supply, it reinforces Bitcoin’s scarcity and often influences price cycles, miner economics, and its role as a deflationary digital asset.
The next milestone? The 2028 halving.