Bitcoin

Bitcoin Halving Explained: What It Means for Price

Bitcoin halvings are among the most anticipated events in crypto. Here's everything you need to know.

What is Bitcoin Halving?

Every 210,000 blocks (approximately 4 years), the reward for mining new blocks is cut in half. This reduces the rate at which new Bitcoin enters circulation.

Halving History

  • 2012: 50 → 25 BTC
  • 2016: 25 → 12.5 BTC
  • 2020: 12.5 → 6.25 BTC
  • 2024: 6.25 → 3.125 BTC
  • 2028: 3.125 → 1.5625 BTC (expected)

Price Impact

Historically, halvings have preceded major bull runs:

  • 2012 halving: ~$12 → ~$1,100 (1 year later)
  • 2016 halving: ~$650 → ~$20,000 (18 months later)
  • 2020 halving: ~$9,000 → ~$69,000 (18 months later)

Why It Matters

Halving reduces Bitcoin's inflation rate, increasing scarcity. With steady or increasing demand and reduced supply, economic theory suggests upward price pressure.

Caution

Past performance doesn't guarantee future results. Many factors affect Bitcoin's price beyond halving events.