What Is Bitcoin Halving — And Why It Matters

The Basics When Bitcoin was created, miners received 50 BTC per block as a reward. Every 210,000 blocks (~4 years), this reward gets cut in half. This event is called the halving. We've had four halvings so far: 2012, 2016, 2020, and 2024. The next is expected around 2028. Why It Matters The halving directly reduces the new supply of Bitcoin entering the market. If demand stays the same (or grows), and supply shrinks — basic economics tells you what happens to price. • 2012 Halving → Bitcoin went from ~$12 to ~$1,000 within a year • 2016 Halving → Price ran from ~$650 to ~$20,000 in 18 months • 2020 Halving → Led to the 2021 bull run above $69,000 The Stock-to-Flow Effect Bitcoin's Stock-to-Flow ratio — the ratio of existing supply to new supply — increases after every halving. Higher S2F historically correlates with higher prices. What to Do About It The best strategy remains simple: accumulate before the halving, hold through the cycle. DCA is the cleanest way to do this without trying to time the exact peak or bottom.