Halvenings Cut Bitcoin Supply in Half: Exploring Price Effects

Von | 26. Juli 2023

• Bitcoin halving events occur every four years as the block reward for mining is cut in half.
• Historically, Bitcoin has performed well after halvening events, though this could be due to global liquidity cycles.
• The next halvening event is set to take place in April 2024.

What are Halvenings?

Bitcoin’s halvening events are scheduled occurrences where the block reward for mining new Bitcoin is cut in half. This happens approximately every four years and there will be a total of 64 halvenings until the final supply of 21 million Bitcoin has been mined in 2140. Currently, 6.25 Bitcoins are released each time a new block is added to the blockchain, but upon the next halving this number will drop to 3.125 and 1.5625 four years after that and so on.

Are Halvenings Priced In?

The question of whether or not these scheduled events are priced into the price of Bitcoin is an interesting one to analyse as it could affect future performance of the coin price-wise. Historically, Bitcoin has done very well following a halving event with its value often spiking up afterwards; however, some suggest that this could simply be linked to concurrent global liquidity cycles rather than anything related directly to the halving itself.

Historical Performance

The first two halvings occurred in 2012 and 2016 respectively; with both seeing positive growth after their respective dates – although it should be noted that sample size here is small given how recent these events were compared to other financial assets and markets which have decades worth of data behind them. That being said, many predict that the upcoming 2024 halving could bring yet more positive news for Bitcoin holders as demand continues to grow around the world for digital assets such as cryptocurrency over traditional ones like cash or stocks and shares etc


In conclusion, it appears that while historical evidence suggests that bitcoin may continue performing well after upcoming halvings; whether or not these performance boosts have anything directly related to them remains unclear at best given how relatively young bitcoin still is compared to other financial markets and assets which have much longer track records behind them when it comes to predicting price movements etc