What Is the Halving?
The halving is a built-in mechanism in Bitcoin's code that reduces the block reward miners receive by 50% every 210,000 blocks — approximately every four years. The most recent halving (April 2024) reduced the reward from 6.25 BTC to 3.125 BTC per block.
How the Halving Works
Bitcoin's monetary policy is entirely pre-programmed. Starting at 50 BTC per block in 2009, the reward halves on a fixed schedule until all 21 million bitcoins are mined (estimated around 2140). Each halving reduces the rate of new supply entering the market while demand remains constant or grows — creating a supply shock.
Why It Matters for Traders
Halvings have historically catalyzed major bull cycles. In each previous cycle, Bitcoin reached new all-time highs within 12-18 months after the halving. While past performance doesn't guarantee future results, the halving's supply reduction is a fundamental driver of Bitcoin's long-term price trajectory and the broader crypto market cycle.