How It Works, and When It Happens Next

Bitcoin halving is a key event in cryptocurrency. Every four years, the reward for mining new Bitcoin is cut in half. This slows the creation of new coins and directly impacts the balance between supply and demand. The halving schedule is built into Bitcoin’s code and plays a big role in shaping its price and long-term outlook.

The most recent halving happened in April 2024, with the next one projected for 2028. Whether you mine, invest, or simply follow Bitcoin news, knowing how halving works is central to making sense of Bitcoin’s design and its reputation as a deflationary asset.

What is the Bitcoin halving, and why does it happen?

Bitcoin halving is an event built into the cryptocurrency’s code that cuts the Bitcoin mining reward in half every 210,000 blocks, or about every four years. This process controls how quickly new Bitcoin enters circulation.

Halving exists to slow the creation of new coins, limit inflation, and maintain Bitcoin’s scarcity. By reducing the block reward over time, the supply of new Bitcoin becomes more predictable and eventually caps out at 21 million coins. This system sets Bitcoin apart from traditional currencies, which can be created in unlimited quantities.

Bitcoin Halving Dates and Block Reward Changes

Since its launch, Bitcoin has gone through several halving events. Each one reduces the number of new coins entering the market, making Bitcoin more scarce over time. Here’s a quick overview:

Halving	Date	Block Number	Block Reward Before	Block Reward After	Price at Halving*	All-Time High After
1st	Nov 28, 2012	210,000	50 BTC	25 BTC	~$12	~$1,000
2nd	Jul 9, 2016	420,000	25 BTC	12.5 BTC	~$650	~$20,000
3rd	May 11, 2020	630,000	12.5 BTC	6.25 BTC	~$8,600	~$65,000
4th	Apr 20, 2024	840,000	6.25 BTC	3.125 BTC	~$63,000**	TBD
5th*	~Apr 2028	1,050,000	3.125 BTC	1.5625 BTC	TBD	TBD

* Approximate figures.
** Spot price on or near the halving date.

Historical Bitcoin Halvings: Timeline and Price Trends

• 2012: The first halving cut the block reward from 50 to 25 Bitcoin. Bitcoin’s price jumped from about $12 to nearly $1,000 within a year.
• 2016: The second halving dropped the reward from 25 to 12.5 Bitcoin. The price climbed from around $650 at the event to nearly $20,000 by late 2017, followed by a sharp correction.
• 2020: The third halving brought the reward from 12.5 to 6.25 Bitcoin. Bitcoin’s price soared past previous highs, reaching nearly $65,000 in 2021, driven by growing institutional interest and global economic shifts.
• 2024: The fourth halving reduced rewards from 6.25 to 3.125 Bitcoin. The event drew intense attention from investors and miners, with ongoing effects still unfolding.

The fifth halving is expected in 2028, cutting the reward again to 1.5625 Bitcoin. Each halving has historically been followed by major price swings and growing public attention.

How Bitcoin Halving Impacts Supply and Price

Bitcoin halving directly affects how many new coins are created, making Bitcoin more scarce over time. Fewer new coins mean less new supply hitting the market, which can create upward pressure on price if demand stays strong.

Historically, Bitcoin’s price has climbed in the months and years after each halving. However, price movements are never guaranteed—other factors like market sentiment, adoption, and economic conditions all play a role. While halvings tend to attract interest and excitement, investors should remember that past results do not predict future performance.

When is the next Bitcoin halving?

The next Bitcoin halving is projected for April 2028, when the block reward will drop from 3.125 to 1.5625 Bitcoin. The exact date depends on how quickly new blocks are mined, but estimates place the event in spring 2028.

See also: Best Ways to Buy Bitcoin With a Bank Account

How does the Bitcoin halving affect miners?

Halving events hit miners first. When rewards are cut in half, miners earn less Bitcoin for the same amount of work.

For some, especially those using older or less efficient equipment, it can become harder to cover electricity and operational costs. If the price of Bitcoin doesn’t rise enough to make up for the smaller rewards, some miners may leave the network.

Over time, this can lead to more mining power concentrated among larger operations with better resources. As block rewards keep shrinking, transaction fees could become a bigger part of miners’ income.

Risks and Opportunities of Bitcoin Halving

Every halving brings a mix of excitement and uncertainty. Some investors look forward to possible price surges, while others focus on the risks.

The market can become highly volatile around these events. There’s no guarantee that Bitcoin’s price will rise after a halving, and sharp swings are always possible. Anyone thinking about investing in Bitcoin should be prepared for both gains and losses.

Preparing for the Next Bitcoin Halving

The best way to prepare is to stay informed. Keep track of the estimated date for the next halving and pay attention to how the market reacts as it approaches.

Study how previous halvings affected both price and miner activity. If you’re investing or mining, stay flexible and be ready for rapid changes in the market.

The Future of Bitcoin and Halving

As more halvings occur, new Bitcoin becomes increasingly scarce. This could push demand higher, but it also means miners will earn less from new coins.

Over time, transaction fees will likely play a bigger role in keeping miners engaged and the network secure. Each halving shapes how Bitcoin works—and its place in the financial world.

Final Thoughts

Bitcoin halving changes the pace at which new coins enter circulation and grabs attention from miners, investors, and the broader market. Each event can drive volatility, influence miner profits, and shift how people think about Bitcoin’s long-term value.

As the next halving approaches, stay alert to price swings and how the mining community adapts to smaller rewards. Past halvings have brought both excitement and unpredictability, but no outcome is ever certain.

Whether you mine, invest, or simply watch from the sidelines, keeping up with Bitcoin halving events will help you make sense of the world’s most talked-about cryptocurrency.