Bitcoin Halving 2024: What You Need to Know
Every four years, the block reward for Bitcoin miners is cut in half. Historically, this supply shock has led to bull markets.
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By sarah-jenkins
Financial Analyst
Bitcoin is programmed money. Unlike fiat currencies which can be printed at will, Bitcoin has a fixed supply cap of 21 million.
Live Market Data
Index: CLR-500
$124.50
▲ 1.30%
What is the Halving?
Approximately every four years, the protocol automatically reduces the new supply of Bitcoin entering the market by 50%. The next halving is expected in April 2024.
- Current Reward: 6.25 BTC per block
- New Reward: 3.125 BTC per block
Historical Context
- 2012 Halving: Followed by a massive rally in 2013.
- 2016 Halving: Preceded the 2017 bull run to $20k.
- 2020 Halving: Preceded the 2021 run to $69k.
Is It Priced In?
The Efficient Market Hypothesis would suggest that a known event should be priced in. However, the crypto market is driven by psychology and narrative. The supply shock is real: miners will have less Bitcoin to sell to cover expenses, potentially reducing sell pressure.