What Is the Bitcoin Halving? How It Affects the Crypto Market
The halving is an event built into bitcoin's code in which the miner reward per block is cut in half. Here's why it exists and why it's not a promise that the price will rise.
What it is
New bitcoins are created as a reward to miners for each block they mine. Every 210,000 blocks (roughly every four years), this reward is automatically cut in half. That's the halving.
| Period | Block reward |
|---|---|
| Network launch | 50 BTC |
| After the 1st halving (2012) | 25 BTC |
| After the 2nd (2016) | 12.5 BTC |
| After the 3rd (2020) | 6.25 BTC |
| After the 4th (2024) | 3.125 BTC |
Why it exists
The halving makes bitcoin's issuance predictable and increasingly slow. There will never be more than 21 million bitcoins.
How it affects the market
- Fewer new coins are created. If demand doesn't drop, this supports the price.
- Expectations are already priced in. Everyone knows about the halving in advance, so the market factors it in long before.
- History doesn't repeat on schedule. Past cycles don't have to repeat: the price is affected by interest rates, regulation, and sentiment.
How bitcoin itself and the blockchain work is covered in the lesson crypto: what it is and how to invest in it. How to buy it: step by step.
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- The halving cuts the miner reward in half every 210,000 blocks.
- It caps bitcoin's supply at no more than 21 million.
- The halving doesn't promise a price increase: the market knows about it in advance.
Frequently Asked Questions
When is the next halving?
It happens after another 210,000 blocks, roughly four years after the previous one. The exact date is estimated from the block production rate, so it shifts slightly.
Do other coins have halvings?
Yes, some coins that copied bitcoin's model do, such as Litecoin. But most altcoins have a different issuance model.
Should I buy bitcoin before the halving?
We don't give investment advice. The whole market knows about the halving, so it doesn't provide any hidden advantage.
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