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Bitcoin Halving is in 365 Days

By Jaya Bijoor

Every 4 years, a significant event shakes up the crypto world, the Bitcoin halving. The stage is set for the next halving on April 28, 2024. Every halving cuts the amount of new Bitcoin that enters circulation in half. While the total supply of Bitcoin is fixed at 21M tokens, only ~19M tokens have been mined so far. The remaining ~2M will be awarded to future miners, which dilutes the supply over time.

The reward that goes to miners decreases over time.

And in 2024, the miner’s reward will be cut again to 3.125 BTC. And at current prices (~ $29,000), that would reduce $5B of new supply from entering the market each year.

The decrease in the reward for miners incentivizes them to increase their mining power. As the reward for mining a block is reduced, the difficulty of mining increases to compensate. As more miners join the network, mining power increases, and the difficulty adjusts accordingly to maintain a stable block production rate. This ensures that Bitcoin's decentralization remains intact and that the halving event is a turning point in the crypto world.

In the past, the halving has been a significant price catalyst. Below you can see how Bitcoin has reacted to the last three halvings:

  • In 2012, BTC rose 365% leading up to the halving and 8,000% in the year following it.

  • In 2016, BTC rose 142% leading up to the halving and 284% in the year following it.

  • In 2020, BTC rose 17% leading up to the halving and 559% in the year following it.

We look forward to May 2025 to see this price action take effect!



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