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Bitcoin halving explained: What it means and when the next BTC halving is due

Learn what the Bitcoin halving cycle is, its importance, and how it impacts the crypto market. Also, know the details of the past BTC halving events

By Forbes India

Published: Jul 31, 2025 02:42:41 PM IST

Updated: Jul 31, 2025 03:06:26 PM IST

Bitcoin has come a long way since its launch in 2009. As the oldest cryptocurrency, it initiated the entire crypto movement that we see today. Decentralisation, digital ledgers, and peer-to-peer currency powered by Bitcoin blockchain technology have transformed the global industries. Since then, thousands of altcoins have emerged, each adding new features or trying to solve different problems. But Bitcoin (BTC) remains the most widely recognised and valuable crypto asset, often called the ‘digital gold.’

With a maximum supply of 21 million coins and over 19.8 million BTC already mined, Bitcoin focuses on a deflationary economic model and scarcity. One event closely tied to this limited supply is the Bitcoin halving cycle. In this post, we’ll discuss what Bitcoin halving is, its impact, and the details of the past events. We’ll also see when the next BTC halving will occur.

What is the Bitcoin halving event?

The Bitcoin halving cycle is a built-in feature of the blockchain network. When crypto miners validate transactions, they solve complex cryptographic puzzles as part of Bitcoin’s proof-of-work (PoW) mechanism. Each time they succeed, they earn a block reward - the newly minted bitcoins. This reward started at 50 BTC but is reduced by half after every four years.

Source | Bitcoin halving cycle: Reducing rewards by half and controlling supply

The idea is to limit how fast new coins enter circulation. With a fixed cap, the BTC halving event helps slow the pace at which supply grows, which can affect scarcity and price. It’s part of how Bitcoin controls inflation without relying on any central authority. The Bitcoin halving cycle is predictable, keeping miners, investors, and the wider market aligned with the network’s monetary system.

Why is the Bitcoin halving cycle beneficial?

Now that we’re clear on what the Bitcoin halving cycle is, let’s understand its importance in the crypto market:

Inflation: BTC halving event slows the rate at which new coins are created, helping maintain long-term inflation control and reinforcing trust in its economic model.
Drives crypto miner engagement: Halving sustains Bitcoin mining incentives through price appreciation and transaction fees, keeping miners active in securing the network.
Supports Bitcoin’s value: With decreasing supply and rising demand, Bitcoin is seen as a deflationary asset, making it attractive to many long-term investors.

A glimpse into BTC halving events so far

The Bitcoin halving cycle happens every 210,000 blocks - roughly every four years. So far, there have been four halvings, each marking a shift in Bitcoin’s supply structure and often influencing price movements.

November 27, 2012: The first BTC halving event dropped the mining reward from 50 to 25 bitcoins per block. At the time, Bitcoin was trading around $12. Within a year, it had crossed $1,000 for the first time.
July 9, 2016: This halving reduced the reward to 12.5 bitcoins. Bitcoin was priced near $650 then, and by December 2017, it crossed $19,000 during the major bull run.
May 11, 2020: During the pandemic shift, the reward dropped from 12.5 to 6.25 BTC in the third halving. Its price hovered around $8,000 in May, and within a year, it hit an all-time high of over $60,000.
April 20, 2024: The most recent halving decreased the block reward to 3.125 BTC. While the long-term impact is still unfolding, the halving has influenced market sentiment and BTC prices.

How does the BTC halving event impact the market?

Each Bitcoin halving cycle is a shift in its economic structure. While this is not a crystal-clear indicator of future prices, it remains a critical factor shaping crypto market psychology, investor behaviour, and the asset’s long-term narrative.

Here are some key market impacts observed around past halvings:

Pre-halving price activity: The months leading up to a BTC halving event often increase market activity. Traders anticipate a tight supply and adjust their positions, sometimes causing a price rally ahead of the event.
Post-halving prices: In the past, Bitcoin has seen substantial price growth within 12 to 18 months after each halving. For instance, following the 2024 halving, BTC reached $111,970 - the highest price since its launch, with a strong bullish sentiment.
More long-term holders: Historical data shows that the percentage of Bitcoin held for over three years after each halving grows. After the first Bitcoin halving cycle, long-term holders increased their share by 73 percent, a trend that has continued with subsequent events.
Institutional influence: Large investors control a significant portion of Bitcoin’s circulating supply. Their post-halving behaviour often sets the tone for market trends, and the presence of ETFs in 2024 has made this cycle especially impactful.
Increased adoption: After each BTC halving event, Bitcoin’s usage metrics, like weekly active wallets, have steadily grown. This shows an increased participation and real-world integration.
Crypto miner: Mining pools usually reduce their holdings to build cash reserves, preparing for lower rewards after halving. This behaviour can also affect short-term market liquidity.

When will the next BTC halving occur?

The next BTC halving is expected around April 12, 2028, at block height 1,050,000. At that point, the block reward will drop from 3.125 BTC to 1.5625 BTC, further tightening the supply. Bitcoin is nearing block ~898,450, so the next halving is roughly 150,000 blocks away. With over 94 percent of the 21 million Bitcoins already in circulation, each BTC halving event brings us closer to the total cap, restricting the supply of new coins.

Frequently asked questions (FAQs)

How many more BTC halvings are left?

Four of the 32 Bitcoin halving cycles have been completed, leaving 28 to be completed by the year 2140, until block rewards drop to zero.

Will Bitcoin mining be profitable after halving?

The 2024 BTC halving event reduced block rewards to 3.125 coins, so miners now earn less for the same effort. Due to lower mining rewards, profitability will depend more on transaction fees and Bitcoin’s market price.

How does the BTC halving event impact other altcoins?

Bitcoin halving cycle reduces its supply, and if demand holds or increases, it can boost BTC’s price. This often triggers a ripple effect across altcoins, causing price swings as traders adjust their positions based on Bitcoin’s movement.