Bitcoin halving is a programmed event that occurs approximately every four years (every 210,000 blocks). During a halving, the reward miners receive for creating new blocks is cut in half. This reduces the rate at which new Bitcoin enters circulation, making BTC increasingly scarce over time. The next halving is expected in 2028, when the block reward will decrease from 3.125 BTC to 1.5625 BTC. Only 21 million Bitcoin will ever exist, and halvings ensure this supply limit is reached gradually.
Historically, Bitcoin halvings have preceded significant price increases. After the 2012 halving, Bitcoin rose from ~$12 to over $1,100. After the 2016 halving, it went from ~$650 to nearly $20,000. After the 2020 halving, Bitcoin climbed from ~$9,000 to over $69,000. After the 2024 halving, the pattern continued with new all-time highs. While past performance doesn\'t guarantee future results, the supply reduction creates fundamental upward pressure on price.
Each halving directly impacts mining profitability by cutting revenue in half (in BTC terms). Less efficient miners are forced to shut down, leading to a temporary decrease in hash rate. However, the network adjusts difficulty to maintain ~10-minute block times. Over time, only the most efficient mining operations survive. The 2028 halving will further consolidate the mining industry, favoring operations with the cheapest electricity and most efficient hardware.
Many investors accumulate Bitcoin in the months leading up to a halving, anticipating the post-halving price increase. Dollar-cost averaging (DCA) is a popular approach — regularly buying Bitcoin regardless of price. Some traders take a more active approach, increasing their Bitcoin allocation 6-12 months before the halving. Use ChangeNow to easily swap other cryptocurrencies for Bitcoin as part of your halving accumulation strategy.