How it works
Each Bitcoin block rewards the successful miner with newly issued BTC plus transaction fees. The protocol halves the new-issuance portion at block heights 210,000, 420,000, 630,000, and so on. The reward started at 50 BTC in 2009, fell to 25 in 2012, 12.5 in 2016, 6.25 in 2020, and 3.125 in April 2024. The next halving is expected in early 2028 at block 1,050,000.
Example
Pre-2024 halving: miners collectively earned 6.25 BTC × 144 blocks per day = 900 BTC of new issuance daily. Post-halving: 3.125 × 144 = 450 BTC. At a BTC price of $60,000, daily new supply pressure dropped from $54 million to $27 million overnight. If demand stays constant, the lower supply rate is mechanically bullish for the price over the years following each halving.
Why it matters
Halving controls Bitcoin’s monetary policy: total supply is capped at 21 million coins, reached around 2140 because each halving extends the issuance tail. It is also a market psychology event: past halvings preceded large bull runs, but causation is debated. What is certain is that miner economics tighten at each halving, accelerating consolidation among efficient operators.
