A Bitcoin (BTC) halving is a scheduled event that halves the reward miners receive for verifying transactions on the network. Halving is designed to slow the creation of new bitcoins and keep its total supply capped at 21 million coins. It happens at intervals of around four years.
Whether you’re new to crypto or a seasoned trader, understanding Bitcoin halving is key to grasping how the world’s first cryptocurrency maintains its scarcity — and why each halving tends to attract so much attention.
The information presented here does not constitute financial advice but is for educational purposes only. Past performance is not a reliable indicator of future results. Please do your own thorough research or consult a professional to better assess the risks of investing in cryptocurrencies.
Roughly every four years, miners’ rewards are cut in half to slow the creation of new coins and maintain Bitcoin’s supply cap of 21 million.
Bitcoin halving is built into the code and happens automatically, creating a transparent and predictable policy that no central bank can change.
Because supply becomes tighter while demand remains steady (or growing), Bitcoin halvings have previously triggered an increase in price, but this trend is never guaranteed.
Smaller Bitcoin miners may struggle with effectively half the reward for the same cost of operation, but they still earn transaction fees.
Last BTC halving:
20 April 2024, when the reward fell from 6.25 to 3.125 BTC.
Next BTC halving (estimate)
2028, when the reward will fall to 1.5625 BTC.
Current block reward
3.125 BTC per mined block.
Bitcoin halving cycle
210,000 blocks (around every four years). A halving is triggered when this many additional blocks are mined.
Maximum supply
21,000,000 BTC, which is a hard cap built into Bitcoin’s code.
Bitcoin halving is a rule built into the Bitcoin network that gradually slows the creation of new coins. Each halving happens automatically according to the original code, so it doesn’t need to be approved beforehand. Halving events take place roughly every four years and will continue until the maximum supply of 21 million bitcoins is reached. By reducing the rate at which new BTC are issued, the idea is that halving increases scarcity and influences how the markets value the coin.
Halving works as follows:
Bitcoin is secured by miners, who use powerful computers to verify transactions and add new blocks to the blockchain, earning newly created bitcoins as a result.
Roughly every four years, or after 210,000 blocks are added, the block reward is cut in half.
Since new bitcoins only enter circulation through mining rewards, halving means fewer coins are created as time goes on, even though blocks continue to be added at the same pace.
Because of halving, there will only ever be 21 million bitcoins, which helps keep the cryptocurrency limited and maintain its scarcity value.
Even as block rewards get smaller, miners will carry on earning transaction fees from users sending bitcoins, so they are incentivised to keep the network secure and running smoothly.
The most recent Bitcoin halving took place on 20 April 2024, when the mining reward was reduced from 6.25 BTC to 3.125 BTC per block. The 2024 halving happened at a block height of 840,000 — that is, after 840,000 blocks had already been added to the blockchain. Because the goal is for a new block to be mined around every 10 minutes or so, this represents years of mining. This was the fourth halving since Bitcoin launched and, like every one before it, the timing and reward cut are hard-coded directly into Bitcoin’s protocol.
Earlier Bitcoin halvings happened in 2012, 2016, and 2020, each reducing the block reward and marking an important milestone for miners and the wider market.
Past performance is not a reliable indicator of future results. Bitcoin prices are highly volatile and can go down as well as up.
The next Bitcoin halving is expected to happen in the first half of 2028, when the block reward will fall to 1.5625 BTC per block. It will happen once the blockchain reaches 1,050,000.
The exact date isn’t set in stone, because Bitcoin halvings are triggered by the number of blocks mined rather than a calendar date. How fast blocks are created depends on the computing power used by miners to process transactions, known as the hash rate, which can shift the timing slightly.
After 2028, Bitcoin halvings are due to occur approximately every four years until around 2140, when the final bitcoin is mined.
Bitcoin halvings can influence the price by reducing the number of new coins entering circulation, which often sparks investor excitement about tighter supply. Having said that, there’s no guarantee that the price will rise afterwards. Plenty of other factors like market sentiment, global events, and trading volume play a significant role in Bitcoin’s price.
Typical price patterns seen around previous halvings include:
Pre-halving buildup: Some investors buy bitcoins in the run-up to a halving, betting on the tighter supply that has historically pushed prices higher in the preceding months, though this result is never guaranteed.
Post-halving supply squeeze: With fewer new coins created per block, supply growth slows down, so steady or growing demand could naturally push the price up.
Short-term swings: Price action becomes volatile around the date of the halving as traders pile in or out based on headlines and market sentiment.
Longer-term trends: Past Bitcoin halvings have sometimes been followed by longer-term price growth, but past performance is not a reliable indicator of future results.
Psychological impact: Each halving of Bitcoin brings renewed attention to the hard 21-million-coin cap, potentially reinforcing the coin’s appeal as a scarce asset.
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Get started nowThe April 2024 halving reduced the reward from 6.25 BTC to 3.125 BTC per block added to the blockchain. Miners effectively earn half as many new bitcoins for the same work, while their costs for electricity, hardware, and upkeep stay much the same.
As a result, halving could lead to smaller or less efficient mining operations closing or shifting to other cryptocurrency investments where mining is more profitable. Alternatively, miners may be forced to upgrade their equipment to newer models to remain competitive.
The Bitcoin network itself doesn’t slow down. The system automatically adjusts the mining difficulty based on the total computing power securing the network (or hash rate), to ensure that new blocks are created every 10 minutes or so.
Miners also earn fees from transactions, so that will likely become a more significant source of income as the block rewards become smaller. Investors and miners might adjust their strategy in advance, hoping that the reduced supply may increase Bitcoin’s price if demand stays strong.
Because halvings reduce how many new coins enter the market, they shift the balance between supply and demand, and that can alter market behaviour in several ways.
Increased market volatility: Around a halving event, Bitcoin’s price can become more volatile, and prices may rise or fall quickly as traders react to news, speculation, and changing market sentiment.
Ripple effect on other cryptocurrencies: Because Bitcoin is the largest cryptocurrency by market cap, its price movements often create a ripple effect that influences the direction of other cryptocurrency prices.
Impact on exchange-traded funds (ETFs): Funds that track Bitcoin, like spot ETFs, rise and fall with the price, meaning halving can impact those investors too.
No guaranteed price increase: Past Bitcoin halvings have been followed by price rises, but many factors can influence the outlook over the longer term, including market conditions, regulation, adoption, and global events.
When the last bitcoin is mined, which is estimated to happen around the year 2140, no more new coins will be created. This is due to Bitcoin’s code, which limits the total supply to 21 million.
Of course, the Bitcoin network will keep running as usual, and people will still be able to send, receive, and hold bitcoins just as they do now. Miners will still verify transactions and keep the network secure but instead of earning new bitcoins, they’ll be paid through transaction fees that users add when they send BTC.
Because Bitcoin’s total supply is fixed, it’s seen as deflationary. Once the creation of new coins stops and the total supply is reached (estimated in the year 2140), existing coins could become rarer if demand remains steady or increases. This is opposite to how currencies like the pound work, where the Bank of England can print more money, leading to inflation that gradually reduces its purchasing power over time.
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